The Bank of Korea (BoK) kept its policy rate unchanged at 2.5% at its May 2026 meeting, in line with expectations and marking the eighth consecutive hold, even as it remains in an easing cycle. The decision reflected policymakers’ cautious stance, as they balanced geopolitical risks against a softer won and a resurgence of inflation pressures. South Korea’s annual inflation rose to 2.6% in April, up from 2.2% in March and the highest since July 2024, underscoring the impact of higher oil prices. The central bank subsequently raised its inflation forecast for this year to 2.7%, up from 2.2% prior to the Middle East conflict, and expects it to ease to 2.3% in 2027. At the same time, policymakers lifted the 2026 growth outlook to 2.6% from 2%, citing a stronger export outlook driven by semiconductor strength, and projected GDP growth of 2.1% for 2027. The May meeting was also the first chaired by new Governor Shin Hyun-song, who took office last month. source: The Bank of Korea
The benchmark interest rate in South Korea was last recorded at 2.50 percent. Interest Rate in South Korea averaged 2.89 percent from 1999 until 2026, 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 May of 2026.
The benchmark interest rate in South Korea was last recorded at 2.50 percent. 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 2.50 percent in 2027, according to our econometric models.