Bank of Korea raised its base rate by 50 bps to 2.25%, the largest increase since the bank adopted interest rates as its primary policy tool in 1999, during its July meeting, as it stepped up its battle against inflation now running at a 23-year high. Wednesday's move followed five previous hikes half that size, as the BoK Governor Rhee Chang-yong had said he was open to a big hike despite concerns about rising debt burdens for small businesses and home owners. The committee warned that further tightening is in the pipeline, as inflation will stay above 6% for some time and run substantially above the May forecast of 4.5% for the year while core inflation is forecast to remain elevated at 4% or higher. Meantime, 2022 GDP growth is projected to be somewhat below the May forecast of 2.7%, due to the slowdown in exports owing to weakening of economic growth in major countries. Policymakers and the government recently met and agreed to act “preemptively” to prevent macroeconomic risks. source: The Bank of Korea
Interest Rate in South Korea averaged 2.87 percent from 1999 until 2022, 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 August of 2022.
Interest Rate in South Korea is expected to be 2.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the South Korea Interest Rate is projected to trend around 3.25 percent in 2023, according to our econometric models.