The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its April 2021 meeting, where it has been held since May last year. Policymakers said domestic economic recovery will strengthen gradually despite the recent spike in local COVID-19 cases, with GDP growth this year is expected to be above the February forecast of 3.0%, supported by exports and facilities investment while the sluggishness in private consumption eased. The central bank forecast that consumer price inflation this year will run above the path projected in February, fluctuating for some time at around 2% before declining slightly. Meantime, core inflation is forecast to rise gradually to the 1% range. The board reaffirmed its commitment to maintaining its accommodative stance while paying attention to changes in financial stability conditions such as fund flows to asset markets and household debt growth. source: The Bank of Korea

Interest Rate in South Korea averaged 2.97 percent from 1999 until 2021, 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 2021.

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 1.25 percent in 2022 and 1.50 percent in 2023, 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 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-11-26 01:00 AM 0.5% 0.5% 0.5% 0.50%
2021-01-15 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-02-25 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-04-15 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-05-27 01:00 AM 0.5% 0.5%
2021-07-15 01:00 AM
2021-08-26 01:00 AM
2021-10-12 01:00 AM


News Stream
South Korea Holds Rates
The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its April 2021 meeting, where it has been held since May last year. Policymakers said domestic economic recovery will strengthen gradually despite the recent spike in local COVID-19 cases, with GDP growth this year is expected to be above the February forecast of 3.0%, supported by exports and facilities investment while the sluggishness in private consumption eased. The central bank forecast that consumer price inflation this year will run above the path projected in February, fluctuating for some time at around 2% before declining slightly. Meantime, core inflation is forecast to rise gradually to the 1% range. The board reaffirmed its commitment to maintaining its accommodative stance while paying attention to changes in financial stability conditions such as fund flows to asset markets and household debt growth.
2021-04-15
Bank of Korea Holds Rates at Record Lows
The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its February 2021 meeting, saying the recovery in the Korean economy is expected to be modest and inflationary pressures on the demand side are forecast to remain weak. Looking ahead, GDP growth this year is projected to be around 3.0 percent, led by exports and investment, generally consistent with the November forecast; while consumer price inflation will run at the low- to mid-1 percent level, exceeding the November forecast of 1.0 percent, largely reflecting the increase in global oil prices and gradual improvement in economic activity. The board also pledged to continue to conduct monetary policy in order to support the economy and stabilize consumer price inflation at the target level over a medium-term horizon, while paying attention to financial stability.
2021-02-25
South Korea Holds Rates Steady at Record Low of 0.5%
The Bank of Korea left its base rate unchanged at a record low of 0.5 percent on January 15th, 2021, as widely expected. Policymakers said labor market conditions remained weak and uncertainties surrounding the economic outlook are judged to remain elevated. GDP growth this year is projected to be around 3.0%, generally consistent with the November forecast. 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 rising household debt, the development related to the pandemic, and its impact on the economy and financial markets. In 2020, the central bank has cut rates by 75 basis points.
2021-01-15
Bank of Korea Holds Rates, Raises Growth Outlook
The Bank of Korea kept its base rate unchanged at a record low of 0.5 percent on November 26th, 2020, saying labor market conditions remained weak and uncertainties surrounding the economic outlook are judged to remain elevated. Still, the board marginally raised its 2020 GDP to -1.1 percent from an early estimate of -1.3 percent, as facilities investment started to recover and exports continued to improve. Policymakers now sees GDP growing by 3 percent in 2021, up from 2.8 percent previously. 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 rising household debt, the development related to the pandemic and its impact on the economy and financial markets. The central bank has already cut rates by 75 basis points so far this year.
2020-11-26

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.