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.

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South Korea Interest Rate

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


Calendar GMT Actual Previous Consensus TEForecast
2020-05-28 01:00 AM 0.50% 0.75% 0.5% 0.25%
2020-07-16 01:00 AM 0.5% 0.5% 0.5% 0.50%
2020-08-27 01:00 AM 0.5% 0.5% 0.5% 0.50%
2020-10-14 01:00 AM 0.5% 0.5% 0.5% 0.50%
2020-11-26 01:00 AM 0.5% 0.50%


News Stream
South Korea Holds Base Rate at Record Low of 0.5%
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.
2020-10-14
South Korea Holds Rates, Cuts 2020 GDP Outlook
The Bank of Korea kept its base rate unchanged at a record low of 0.5 percent on August 27th, 2020, as widely expected, amid the prolonged impact of the COVID-19 crisis. Policymakers said that the economy has remained sluggish, with private consumption weakening while a drop in exports a bit moderating. The board revised lower its 2020 GDP to -1% from an earlier estimate in May of -0.2% due to the resurgence of local virus cases. 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, changes in financial stability, and the effects of the policy measures taken in response to the pandemic.
2020-08-27
South Korea Holds Base Rate at 0.5%
The Bank of Korea kept its base rate unchanged at a record low of 0.5 percent on July 16th, 2020, as widely expected. Policymakers said that domestic economic growth has remained sluggish on the back of ongong coronavirus crisis, as exports continued to fall while the correction in construction investment has continued. the recovery in facilities investment had been subdued. Meantime, and 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 developments related to the pandemic, the impact on the economy and financial markets, changes in financial stability, and the effects of the policy measures taken in response to the pandemic. Thursday’s decision follows a 25 basis point reduction in May, the fourth cut in the current easing cycle.
2020-07-16
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

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.