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. source: The Bank of Korea

Interest Rate in South Korea averaged 2.93 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 September 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. 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
0.75 0.50 5.25 0.50 1999 - 2021 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2021-04-15 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-05-27 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-07-15 01:00 AM 0.5% 0.5% 0.5% 0.5%
2021-08-26 01:00 AM 0.75% 0.5% 0.75% 0.75%
2021-10-12 01:00 AM 0.75%
2021-11-25 01:00 AM
Go to our Calendar for more events. Or learn more about the Calendar API for direct access.


News Stream
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 Holds Rates, Signals Tightenings
The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its July 2021 meeting, as widely expected, as the nation is battling against the fourth wave of COVID-19 cases. The central bank projected the economy to grow by 4% this year, consistent with the forecast in May, mainly supported by exports and investment as private consumption is expected to temporarily weaken, amid a surge in the coronavirus resurgence. While maintaining an accommodative stance of monetary policy, the board said it will judge whether it is appropriate to adjust the degree of accommodation while thoroughly assessing developments related to the pandemic, changes in the pace of growth and inflation, and the risk of a buildup of financial imbalances. The central bank has three rate decisions left for this year, the next one due on August 26th. Since last year, policymakers have slashed a total of 75 basis points to a record low of 0.5%.
2021-07-15
South Korea Holds Rates; Raises GDP, Inflation Outlook
The Bank of Korea left its base rate unchanged at a record low of 0.5 percent during its May 2021 meeting, where it has been held since May last year, but revised higher its economic outlook, as exports accelerated while private consumption gradually emerged from its slump. The central bank now forecasts the economy to grow by 4% this year, the steepest pace of expansion since 2010, up from an earlier projection of 3%. Regarding prices, consumer inflation is expected to rise by 1.8% in 2021, compared with the prior estimates of 1.3%. The board reaffirmed that it will continue to conduct monetary policy in order to support the economy and stabilize consumer inflation at the target over a medium-term horizon while paying attention to financial stability. In this process, the board will assess developments related to COVID-19 and major countries' economies, while monitoring financial imbalances such as fund flows in asset markets and household debt.
2021-05-27
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

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.