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

The Bank of Korea left its base rate steady at 1.5 percent on July 12th, as widely expected, mentioning growing concerns about US protectionist measures which can hit hard the export-driven South Korean economy. In addition, policymakers worry about the persistent sluggish labour market conditions, that continue to weigh on inflation. Interest Rate in South Korea averaged 3.23 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 Leaves Monetary Policy Unchanged


The Bank of Korea left its base rate steady at 1.5 percent on July 12th, as widely expected, mentioning growing concerns about US protectionist measures which can hit hard the export-driven South Korean economy. In addition, policymakers worry about the persistent sluggish labour market conditions, that continue to weigh on inflation.

Excerpts from the statement by The Bank of Korea:

The Board considers that the global economy has continued its robust growth. The volatility in the global financial markets has expanded, as a result mainly of concerns about the trade disputes in the world and of the strengthening of the US dollar. 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 are still sluggish, with the extent of increase in the number of persons employed having remained at a low level. Going forward the Board expects domestic economic growth to be slightly below the path projected in April, but to 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% level, due mainly to the slowing pace of increase in agricultural and livestock product prices and despite the prices of petroleum products having risen greatly. Core inflation (with food and energy product prices excluded from the CPI) has fallen into the low-1% range, and the rate of inflation expected by the general public has remained at the mid-2% level. Looking ahead it is forecast that consumer price inflation, after remaining in the mid-1% range for some time, will pick up and gradually approach the target level. Core inflation will also gradually rise.

The volatility of price variables in the domestic financial markets has expanded, in reflection of global financial market movements. The Korean won-US dollar exchange rate has risen significantly, in line with the global strengthening of the US dollar. Stock prices and long-term market interest rates have fallen to considerable extents, under the influence of heightened external uncertainties related chiefly to the US-China trade dispute. 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.

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, the trend of increase in household debt, and geopolitical risks.


Bank of Korea l Rida | rida@tradingeconomics.com
7/12/2018 9:53:54 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-04-12 01:00 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
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% 1.75%
2018-10-18 01:00 AM Interest Rate Decision 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 1.69 1.68 6.14 1.27 percent [+]
Money Supply M0 98808700.00 98452500.00 99458000.00 11200.00 KRW Million [+]
Money Supply M1 845332.40 848516.20 848516.20 260.40 KRW Billion [+]
Money Supply M2 2616989.70 2606115.30 2616989.70 590.60 KRW Billion [+]
Money Supply M3 3684424.70 3667852.80 3684424.70 57007.90 KRW Billion [+]
Foreign Exchange Reserves 400300.00 398980.00 400300.00 564.50 USD Million [+]
Loans to Private Sector 8064214.00 8073432.00 8073432.00 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 492320.40 484551.90 510090.10 310.30 KRW Billion [+]
Foreign Stock Investment 7782.51 7749.54 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 July 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
Turkey 17.75 Jun/18
Mexico 7.75 Jun/18
Russia 7.25 Jun/18
Brazil 6.50 Jun/18
India 6.25 Jun/18
Indonesia 5.25 Jun/18
China 4.35 Jun/18
United States 2.00 Jun/18
Australia 1.50 Jul/18
Canada 1.50 Jul/18
South Korea 1.50 Jul/18
United Kingdom 0.50 Jul/18
Euro Area 0.00 Jun/18
France 0.00 Jun/18
Germany 0.00 Jun/18
Italy 0.00 Jun/18
Netherlands 0.00 Jun/18
Spain 0.00 Jun/18
Japan -0.10 Jun/18
Switzerland -0.75 Jun/18


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