South Korea Interest Rate  1999-2018 | Data | Chart | Calendar | Forecast

The Bank of Korea held its base rate steady at 1.5 percent on August 31st, as widely expected, citing a fragile job market and subdued consumer inflation. Interest Rate in South Korea averaged 3.22 percent from 1999 until 2018, reaching an all time high of 5.25 percent in October of 2000 and a record low of 1.25 percent in June of 2016.

South Korea Interest Rate
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South Korea Keeps Base Rate Unchanged at 1.5% in August

The Bank of Korea held its base rate steady at 1.5 percent on August 31st, as widely expected, citing a fragile job market and subdued consumer inflation.

Excerpts from the statement by The Bank of Korea:

The Board considers that the global economy has continued its robust growth. In the global financial markets, some emerging market economies with weak external soundness have seen unease again, including capital outflows and sharp depreciations of their currencies. Looking ahead the Board sees global economic growth as likely to be affected by factors such as the movements toward spreading trade protectionism, the paces of monetary policy normalization in major countries, and the directions of the US government's economic policies.

The Board judges that the solid trend of domestic economic growth has continued, as consumption and exports have shown favorable movements although the adjustments in facilities and construction investment have persisted. Employment conditions have become more sluggish, with the extent of increase in the number of persons employed having lessened significantly. Going forward the Board expects domestic economic growth to be generally consistent with the path projected in July and sustain a rate at its potential level. It anticipates that investment will slow but that the trend of steady increase in consumption will continue, and that exports will also sustain their favorable movements thanks to the buoyancy of the global economy.

Consumer price inflation has remained at the mid-1 percent as the increases in service fees and agricultural product prices have slowed, despite the accelerating pace of increase in the prices of petroleum products. Core inflation (with food and energy product prices excluded from the CPI) has fallen to the 1 percent, and the rate of inflation expected by the general public has been in the mid- to upper-2 percent range. Looking ahead it is forecast that consumer price inflation, after remaining in the mid-1 percent range for some time, will pick up and gradually approach the target level. Core inflation will also gradually rise.

The domestic financial markets have been generally stable. Long-term market interest rates have fallen, affected by the financial unease in some emerging market economies and the sluggishness of employment. Stock prices had declined, due mainly to concerns about the US-China trade dispute, but have since rebounded as these concerns have eased somewhat. The Korean won-US dollar exchange rate has fluctuated in line with changes in the value of the dollar globally. Household lending has sustained its higher rate of expansion than in past years, although the amount of its expansion has lessened somewhat. Housing sales prices have remained steady overall, but have risen rapidly in some parts of Seoul and its surrounding areas.

Looking ahead, the Board will conduct monetary policy so as to ensure that the recovery of economic growth continues and consumer price inflation can be stabilized at the target level over a medium-term horizon, while paying attention to financial stability. As it is forecast that inflationary pressures on the demand side will not be high for the time being, while the domestic economy is expected to continue its solid growth, the Board will maintain its accommodative monetary policy stance. In this process it will judge carefully whether it is necessary to adjust its accommodative monetary policy stance further, while closely checking future economic growth and inflation trends. It will also carefully monitor conditions related to trade with major countries, any changes in the monetary policies of major countries, financial and economic conditions in emerging market economies, the trend of increase in household debt, and geopolitical risks.

Bank of Korea l Rida |
8/31/2018 2:16:39 AM

Calendar GMT Actual Previous Consensus TEForecast
2018-05-24 01:00 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-07-12 01:00 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-08-31 01:00 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.75%
2018-10-18 01:00 AM Interest Rate Decision 1.5% 1.75%
2018-11-30 01:00 AM Interest Rate Decision 1.75%

South Korea Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 5.25 1.25 percent [+]
Interbank Rate 1.66 1.66 6.14 1.27 percent [+]
Money Supply M0 99333700.00 99049400.00 99458000.00 11200.00 KRW Million [+]
Money Supply M1 849972.70 840329.70 849972.70 260.40 KRW Billion [+]
Money Supply M2 2640903.60 2610547.50 2640903.60 590.60 KRW Billion [+]
Money Supply M3 3713635.60 3681149.70 3713635.60 57007.90 KRW Billion [+]
Foreign Exchange Reserves 401130.00 402450.00 402450.00 564.50 USD Million [+]
Loans to Private Sector 8172684.00 8122052.00 8172684.00 2603700.00 KRW Hundred Million [+]
Deposit Interest Rate 1.67 1.56 19.50 1.56 percent [+]
Private Debt To Gdp 253.50 254.10 254.10 237.30 percent [+]
Central Bank Balance Sheet 498776.90 500083.60 510090.10 310.30 KRW Billion [+]
Foreign Stock Investment 7302.78 7782.51 7782.51 349.48 USD Hundreds of Millions [+]

South Korea Interest Rate

In South Korea the interest rates decisions are taken by the Bank of Korea’s (BOK) Monetary Policy Committee. The official interest rate is the Bank of Korea Base Rate which was changed from overnight call rate on March 2008. This page provides - South Korea Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Korea Interest Rate - actual data, historical chart and calendar of releases - was last updated on September of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 5.25 1.25 1999 - 2018 percent Daily

interest rate by Country
Country Last
Argentina 60.00 Sep/18
Turkey 24.00 Sep/18
Mexico 7.75 Aug/18
Russia 7.50 Sep/18
Brazil 6.50 Aug/18
India 6.50 Aug/18
South Africa 6.50 Aug/18
Indonesia 5.50 Aug/18
China 4.35 Aug/18
Saudi Arabia 2.50 Aug/18
United States 2.00 Aug/18
Australia 1.50 Sep/18
Canada 1.50 Sep/18
South Korea 1.50 Aug/18
Singapore 1.06 Aug/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Aug/18