The Bank of Korea raised its base rate by 25 basis points to 1.75 percent on November 30th 2018, as widely expected. It is the first rate hike since November 2017, amid huge household debts. Interest Rate in South Korea averaged 3.20 percent from 1999 until 2018, reaching an all time high of 5.25 percent in October of 2000 and a record low of 1.25 percent in June of 2016.
Interest Rate in South Korea is expected to be 1.75 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 2.00 in 12 months time. In the long-term, the South Korea Interest Rate is projected to trend around 2.25 percent in 2020, according to our econometric models.