The Bank of Korea raised its base rate by 25 basis points to 1% during its November 2021 meeting, as widely expected, the second-rate hike in three months, amid rising inflation and mounting household debt. The central bank said 2021 consumer price inflation will run considerably above 2%, exceeding the path projected in August, due to a surge in oil prices and the base effect from the fall in the prices of public services last year. For 2022, the inflation outlook was lifted to 2% from earlier projections of 1.5%. Regarding the GDP, the board noted the country's economy continued its sound recovery, supported by an improvement in private consumption and sustained exports and investment. 2021 GDP growth is expected to reach 4% and 3% next year. The board reiterated it will continue to manage the monetary policy with attention to financial stability while ensuring that the growth recovery continues and the inflation rate can be stabilized at the target level in the medium term. source: The Bank of Korea

Interest Rate in South Korea averaged 2.91 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 December of 2021.

Interest Rate in South Korea is expected to be 1.00 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 1.25 percent in 2022 and 1.50 percent in 2023, according to our econometric models.

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South Korea Interest Rate


Calendar GMT Actual Previous Consensus TEForecast
2021-08-26 01:00 AM 0.75% 0.5% 0.75% 0.75%
2021-10-12 01:00 AM 0.75% 0.75% 0.75% 0.75%
2021-11-25 01:00 AM 1% 0.75% 1% 1%
2022-01-14 01:00 AM 1%
2022-02-24 01:00 AM
2022-04-14 01:00 AM


Related Last Previous Unit Reference
Interest Rate 1.00 0.75 percent Nov/21
Interbank Rate 1.35 1.35 percent Dec/21
Money Supply M1 1343874.20 1333808.10 KRW Billion Sep/21
Money Supply M0 151413900.00 147345000.00 KRW Million Sep/21
Money Supply M2 3518041.10 3507331.50 KRW Billion Sep/21
Money Supply M3 4796717.50 4786149.80 KRW Billion Sep/21
Foreign Exchange Reserves 463907.60 469210.00 USD Million Nov/21
Loans to Private Sector 10592891.00 10490045.00 KRW Hundred Million Oct/21
Lending Rate 2.00 2.00 percent Dec/21
Central Bank Balance Sheet 578868.40 574187.90 KRW Billion Sep/21
Foreign Stock Investment 966191.50 1055887.80 USD Million Sep/21

News Stream
South Korea Raises Base Rate by 25 Bps to 1%
The Bank of Korea raised its base rate by 25 basis points to 1% during its November 2021 meeting, as widely expected, the second-rate hike in three months, amid rising inflation and mounting household debt. The central bank said 2021 consumer price inflation will run considerably above 2%, exceeding the path projected in August, due to a surge in oil prices and the base effect from the fall in the prices of public services last year. For 2022, the inflation outlook was lifted to 2% from earlier projections of 1.5%. Regarding the GDP, the board noted the country's economy continued its sound recovery, supported by an improvement in private consumption and sustained exports and investment. 2021 GDP growth is expected to reach 4% and 3% next year. The board reiterated it will continue to manage the monetary policy with attention to financial stability while ensuring that the growth recovery continues and the inflation rate can be stabilized at the target level in the medium term.
2021-11-25
South Korea Holds Rates, Flags Rate Hike in November
The Bank of Korea kept its base rate unchanged at 0.75%, as widely expected, during its October 2021 meeting following its first rate hike in nearly three years in August. Policymakers, however, said further tightening could come as soon as November, amid efforts to curb rising inflation and household debt. The board noted the economy has continued its sound recovery as exports and investment continued their robust trend while private consumption improved following rising vaccination rates as well as the execution of a supplementary budget. Regarding economic outlook, South Korea's GDP growth this year is projected to be around 4%, consistent with the forecast in August. Meantime, 2021 consumer price inflation is forecast to run at the mid-2% level for some time, exceeding the path projected in August, before declining somewhat. Core inflation is forecast to increase to around the upper-1% level.
2021-10-12
South Korea Raises Base Rate by 25 Bps to 0.75%
The Bank of Korea raised its base rate by 25 basis points to 0.75% during its August 2021 meeting, as widely expected, the first-rate hike in near three years and the first major Asian economy to tighten its monetary policy since the pandemic began. Policymakers said the economy is likely to continue its recovery as private consumption is forecast to improve gradually on the expansion of vaccinations and supplementary budget, while exports and investment are expected to sustain their buoyancy. 2021 GDP growth is projected to be around 4%, consistent with the forecast in May. Meantime, 2021 consumer price inflation will increase to the lower-2%, exceeding the May forecast of 1.8%. Core inflation is forecast to run at the lower-1% level. The board said it will gradually adjust the degree of policy accommodation as the economy is expected to continue its sound growth, despite uncertainties over the virus. The central bank has two rate decisions left for this year.
2021-08-26

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.