The Bank of Korea kept its base rate unchanged at 1.25 percent on January 17th 2020, as widely expected, amid easing global trade tensions and signs of domestic economic recovery following efforts from the government to step up fiscal spending. Policymakers said they will maintain accommodative monetary policy stance ahead as inflationary pressures on the demand side will remain low and the economy will grow moderately. The Committee will closely monitor any development in global trade disputes, major countries' economy and geopolitical risks and decide whether to adjust the degree of monetary policy accommodation. The government recently announced that 62 percent of the state budget to be implemented in the first half of the year. Interest Rate in South Korea averaged 3.11 percent from 1999 until 2020, 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. source: The Bank of Korea
Interest Rate in South Korea is expected to be 1.25 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in South Korea to stand at 1.25 in 12 months time. In the long-term, the South Korea Interest Rate is projected to trend around 1.25 percent in 2020, according to our econometric models.