The Bank of Korea (BoK) held its policy interest rate steady at 2.5% for the seventh consecutive meeting in April 2026, in line with market expectations, as policymakers assessed the impact of the Iran war on domestic cost pressures and GDP growth. The decision came amid rising inflation and heightened volatility in financial and foreign exchange markets. Annual inflation accelerated to 2.2% in March 2026, up from 2.0% in the previous two months, marking the highest reading since last December and surpassing the central bank’s 2% target. Looking ahead, inflation is expected to rise to the mid- to upper-2% range due to a surge in global oil prices. CPI for this year is expected to exceed the February forecast of 2.2%, while core inflation is also likely to be somewhat higher than the previous forecast of 2.1%. Meanwhile, the growth rate for this year is expected to be below the February forecast of 2.0%. 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.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-01-15 01:00 AM Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2026-02-26 01:00 AM Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2026-04-10 01:00 AM Interest Rate Decision 2.5% 2.5% 2.5% 2.5%
2026-05-28 01:00 AM Interest Rate Decision 2.5%
2026-07-16 01:00 AM Interest Rate Decision
2026-08-27 01:00 AM Interest Rate Decision


Related Last Previous Unit Reference
Central Bank Balance Sheet 589659.80 599154.70 KRW Billion Feb 2026
Foreign Exchange Reserves 427880.00 423660.00 USD Million Apr 2026
Interbank Rate 2.76 2.77 percent May 2026
Interest Rate 2.50 2.50 percent Apr 2026
Lending Rate 3.00 3.00 percent Apr 2026
Loans to Private Sector 1457891.20 1447994.10 KRW Billion Feb 2026
Money Supply M0 202689600.00 199916000.00 KRW Million Feb 2026
Money Supply M1 1366297.80 1349860.20 KRW Billion Feb 2026
Money Supply M2 4618411.30 4568698.40 KRW Billion Feb 2026
Money Supply M3 6160477.80 6107284.70 KRW Billion Feb 2026


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.
Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.50 5.25 0.50 1999 - 2026 percent Daily

News Stream
New BoK Governor Eyes Flexible Policy Amid Volatile Outlook
South Korea’s new central bank chief signaled a cautious policy stance as geopolitical tensions cloud the outlook. In his inauguration speech on Tuesday, Bank of Korea Governor Shin Hyun-song said policymakers must remain “cautious and flexible” as the Middle East conflict creates a supply shock, complicating both inflation and growth trajectories. He warned that rising oil prices linked to the Iran war are simultaneously pushing inflation higher while weighing on economic activity, a combination that raises risks for financial stability and market volatility. Shin emphasized the need to balance price stability with safeguarding the financial system amid these uncertainties. Having begun his four-year term on Tuesday, he is set to chair his first policy meeting on May 28, where markets will closely watch for signals on how the central bank plans to navigate an increasingly challenging environment.
2026-04-21
BoK Governor Nominee Vows Price Stability Amid Middle East Risks
Bank of Korea governor nominee Shin Hyun-song on Wednesday pledged to prioritize price stability as South Korea faces rising inflation risks and growth uncertainty linked to the Middle East conflict. At his confirmation hearing, Shin highlighted mounting price pressures and downside risks to growth, promising to balance inflation control, financial stability, and steady expansion. He cautioned inflation could climb in the coming months on higher oil prices and a weaker won, while growth may undershoot forecasts. “Given South Korea’s sensitivity to oil prices, I will place greater emphasis on price stability,” he said. Shin is set to succeed Rhee Chang-yong on April 20, ahead of the May rate decision, but offered no policy guidance. He noted direction will hinge on Middle East developments, with supply risks around the Strait of Hormuz.
2026-04-15
South Korea Holds Rates Amid Middle East Uncertainty
The Bank of Korea (BoK) held its policy interest rate steady at 2.5% for the seventh consecutive meeting in April 2026, in line with market expectations, as policymakers assessed the impact of the Iran war on domestic cost pressures and GDP growth. The decision came amid rising inflation and heightened volatility in financial and foreign exchange markets. Annual inflation accelerated to 2.2% in March 2026, up from 2.0% in the previous two months, marking the highest reading since last December and surpassing the central bank’s 2% target. Looking ahead, inflation is expected to rise to the mid- to upper-2% range due to a surge in global oil prices. CPI for this year is expected to exceed the February forecast of 2.2%, while core inflation is also likely to be somewhat higher than the previous forecast of 2.1%. Meanwhile, the growth rate for this year is expected to be below the February forecast of 2.0%.
2026-04-10