Bank of Korea raised its base rate by 25 bps to 1.75%, the highest level since June 2019, during its May meeting as it seeks to curb surging inflation. It was the third 25bps rate hike this year. In his first-rate review after taking office last month, governor Rhee Chang-yong and the board member raised further their 2022 inflation forecasts to 4.5% from an earlier projection of 3.1%, citing soaring oil prices and industrial products and adding it was necessary to conduct monetary policy with more emphasis on inflation for some time. Meantime, the committee said that it expects core inflation to stay around 3% this year. Governor Rhee recently said that the BoK could consider big-step rate hike in the coming months, depending on data. On the GDP, the board cut the 2022 growth outlook to 2.7% from 3%, amid a slowdown in exports as global uncertainty heightened. source: The Bank of Korea
Interest Rate in South Korea averaged 2.87 percent from 1999 until 2022, 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 June of 2022.
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. In the long-term, the South Korea Interest Rate is projected to trend around 2.50 percent in 2023, according to our econometric models.