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.

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South Korea Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
0.50 0.75 5.25 0.50 1999 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-02-27 01:00 AM 1.25% 1.25% 1% 1.00%
2020-03-16 07:50 AM 0.75% 1.25% 1.00%
2020-04-09 01:00 AM 0.75% 0.75% 0.75% 0.75%
2020-05-28 01:00 AM 0.50% 0.75% 0.5% 0.25%
2020-07-16 01:00 AM 0.25%
2020-08-27 01:00 AM 0.25%
2020-10-14 01:00 AM 0.25%
2020-11-26 01:00 AM 0.25%


News Stream
South Korea Cuts Key Rate to Record Low of 0.5%
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.
2020-05-28
Bank of Korea Hints at Further Policy Easing
Most of Bank of Korea policymakers agreed that there is a need to ease policy interest rates further, as the coronavirus pandemic hit the economy, minutes of the April 9th policy meeting showed. The BOK kept its base rate unchanged at a record low of 0.75 percent and expanded its bond-buying programme to help mitigate the negative impact of the COVID-19 pandemic, signaling strong appetite for further rate cuts and unconventional policy measures. In March, the BOK slashed interest rates by 50 basis points in its largest policy easing since the global financial crisis.
2020-04-28
Bank of Korea Holds Rates at Record Low
The Bank of Korea kept its base rate unchanged at a record low of 0.75 percent during its April meeting, following a surprise rate reduction last month, and expanded its bond-buying programme to help mitigate the negative impact of the COVID-19 pandemic. Policymakers also pledged to act again to support the economy if needed, with possible measures including further rate cuts and unconventional policy. The country's GDP growth is projected to fall considerably below the February's forecast of 2.1% in 2020, while consumer price inflation and core inflation will run considerably below the prior projection of 1% and 0.7%, respectively, due to the drop in oil prices and weakening demand-side inflationary pressure. The board added that it will conduct monetary policy in an accommodative manner in order to curb downside risks to the economy and ease volatility in financial markets.
2020-04-09
South Korea Cuts Base Rate to Fresh Record Low of 0.75%
The Bank of Korea lowered its base rate by 50 bps to a record low of 0.75% in an emergency meeting on 16th March. The rate cut was the first of its kind in over ten years, as policymakers try to reduce the economic fallout from the coronavirus outbreak. The decision follows the US Federal Reserve's Sunday move to lower rates to near zero. The board said that amid high level of uncertainties at home and abroad, it will maintain its accommodative policy stance going forward. In addition, it also cut the rates on the Bank Intermediated Lending Support Facility by 50 bps to 0.25% aiming to support regional SMEs and SMEs afected by the virus outbreak. The bank also decided to broaden the eligible collateral for open market operations to include bank financial debentures that are not credit risk-free. All these additional measures will be effective on 1st April and the securities that have been made additionally eligible as collateral will be valid for one year from the effective date.
2020-03-16

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.