The Bank of Korea lowered its policy rate by 25 basis points to a fresh record low of 0.5 percent on May 28th. This marked the second rate cut this year, with policymakers warning the COVID-19 pandemic would be worse for the economy than the 2008 global financial crisis. The central bank revised down its 2020 economic outlook to a 0.2% fall, the steepest contraction since the 1998 Asian financial crisis, from its February forecast of 2.1% growth. In addition, policymakers mentioned that 2020 inflation at 0.3%, down sharply from 1.0% seen earlier. The board reiterated that it will continue to conduct monetary policy in order to support the economy while paying attention to financial stability and thoroughly assessing developments related to the pandemic, the impact on the economy and financial markets.
Interest Rate in South Korea averaged 3.07 percent from 1999 until 2020, reaching an all time high of 5.25 percent in October of 2000 and a record low of 0.50 percent in May of 2020. This page provides - South Korea Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. South Korea Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on June of 2020. source: The Bank of Korea
Interest Rate in South Korea is expected to be 0.25 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 0.25 in 12 months time. In the long-term, the South Korea Interest Rate is projected to trend around 0.50 percent in 2021 and 1.00 percent in 2022, according to our econometric models.