The Bank of Korea kept its base rate unchanged at a record low of 0.5 percent on October 14th, 2020, as widely expected, amid the prolonged impact of the COVID-19 crisis. Policymakers said that the economy had continued to recover, albeit at a slow pace, with a slump in exports easing amid tepid gains in private consumption. Going forward, the economy is likely to recover gradually, led mainly by exports. However, uncertainties surrounding the economic outlook are judged to remain elevated. GDP growth is projected to be generally consistent with the August forecast of -1.3%. Meantime, inflationary pressures on the demand side are forecast to remain weak. The board reaffirmed that it will maintain its accommodative monetary policy stance, while assessing the severity of virus resurgence and its impact on the economy and financial markets. The central bank has already cut rates by 75 basis points so far this year.
Interest Rate in South Korea averaged 3.02 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 October of 2020. source: The Bank of Korea
Interest Rate in South Korea is expected to be 0.50 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 0.50 in 12 months time. In the long-term, the South Korea Interest Rate is projected to trend around 0.50 percent in 2021 and 1.25 percent in 2022, according to our econometric models.