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.

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South Korea Interest Rate



Calendar GMT Actual Previous Consensus TEForecast
2022-02-24 01:00 AM 1.25% 1.25% 1.25% 1.25%
2022-04-14 01:00 AM 1.5% 1.25% 1.25% 1.5%
2022-05-26 01:00 AM 1.75% 1.5% 1.75% 1.75%
2022-07-14 01:00 AM 1.75%
2022-08-25 01:00 AM
2022-10-14 01:00 AM


Related Last Previous Unit Reference
Interest Rate 1.75 1.50 percent May 2022
Interbank Rate 2.16 2.16 percent Jun 2022
Money Supply M1 1370039.30 1374255.00 KRW Billion Apr 2022
Money Supply M0 162181000.00 160550100.00 KRW Million Apr 2022
Money Supply M2 3656057.60 3644068.00 KRW Billion Apr 2022
Money Supply M3 4977731.70 4960391.90 KRW Billion Apr 2022
Foreign Exchange Reserves 447711.10 449297.70 USD Million May 2022
Loans to Private Sector 11191639.00 11060280.00 KRW Hundred Million May 2022
Lending Rate 2.75 2.75 percent Jun 2022
Central Bank Balance Sheet 563775.70 593177.20 KRW Billion Apr 2022
Foreign Stock Investment 940574.20 992148.90 USD Million Mar 2022

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
1.75 1.50 5.25 0.50 1999 - 2022 percent Daily

News Stream
South Korea Raises Base Rate Again, Sees Higher Inflation
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.
2022-05-26
South Korea Unexpectedly Raises Base Rate to 1.5%
Bank of Korea raised its base rate by 25 bps to 1.50%, the highest level since August 2019, during its April 2022 meeting in an unexpected move as it seeks to curb surging inflation, which is now double the bank's 2% target. The board forecast that the CPI will stay in the 4% range for some time, and run substantially above the February forecast of 3.1% for this year. Core inflation is forecast to remain around 3% for a considerable time. Meantime, the 2022 GDP growth projection will be below the February forecast of 3%, affected by the Ukraine crisis. The board added it will adjust the degree of policy accommodation as the economy continues its recovery, despite headwinds from home and abroad. Policymaker reiterated they will thoroughly assessing risks stemming from COVID-19, financial imbalances, monetary policy changes in major countries, and geopolitical risks.Thursday's rate decision was taken without a governor as former chief Lee Ju-yeol's term ended in March.
2022-04-14
South Korea Holds Rates, Lifts Inflation Outlook
The Bank of Korea kept its base rate unchanged at 1.25% during its February 2022 meeting, as widely expected, amid inflation concerns, surging COVID-19 cases, and mounting tensions in Ukraine. The decision came after the central bank raised the rate by 25bps in January, which was the third of its kind since August last year. The board forecast that the CPI will run substantially above 3% for a considerable time, exceeding the figure projected in November of 2%. Meantime, the 2022 GDP growth projection stays around 3%, supported by private spending and solid exports. The board added it will appropriately adjust the degree of policy accommodation as the economy continues its sound growth, reiterating it will continue to put attention to financial stability while ensuring that the growth recovery continues and the inflation rate can be stabilized at the target level. Thursday's rate-setting meeting was the last one presided over by governor Lee Ju-yeol as his term will end on March 31st.
2022-02-24