The Bank of Korea slashed its base rate by 25bps to 3.25% during the October meeting, marking the first reduction since May 2020 and aligning with market estimates. The move brought borrowing costs to their lowest in nearly two years, reflecting easing inflation, weakening economic output, and efforts to curb mortgage-fueled household debt. The board noted that short-term inflation expectations had dropped to 2.8%. Meantime, consumer inflation is projected to stay below 2% this year, down from August’s forecasts of 2.5%, while core inflation is steady at 2.0%. For 2025, headline and core inflation are expected to be consistent with earlier figures of 2.1% and 2.0%, despite factors like Middle East tensions, exchange rate fluctuations, and public utility adjustments. The committee said it will carefully assess the pace of further cuts, weighing trade-offs in policy. Regarding GDP, the economy is expected to grow 2.4% in 2024 and 2.1% in 2025, due to delayed recovery in domestic demand. source: The Bank of Korea

The benchmark interest rate in South Korea was last recorded at 3.25 percent. Interest Rate in South Korea averaged 2.91 percent from 1999 until 2024, 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 November of 2024.

The benchmark interest rate in South Korea was last recorded at 3.25 percent. Interest Rate in South Korea is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.




Calendar GMT Reference Actual Previous Consensus TEForecast
2024-07-11 01:00 AM Interest Rate Decision 3.5% 3.5% 3.5%
2024-08-22 01:00 AM Interest Rate Decision 3.5% 3.5% 3.5% 3.5%
2024-10-11 01:00 AM Interest Rate Decision 3.25% 3.5% 3.25% 3.25%
2024-11-28 01:00 AM Interest Rate Decision 3.25% 3.25% 3.25%
2025-01-16 01:00 AM Interest Rate Decision
2025-02-25 01:00 AM Interest Rate Decision


Related Last Previous Unit Reference
Central Bank Balance Sheet 562489.40 554429.10 KRW Billion Sep 2024
Foreign Exchange Reserves 415700.00 419970.00 USD Million Oct 2024
Foreign Stock Investment 952016.80 861743.50 USD Million Dec 2023
Interbank Rate 3.41 3.41 percent Nov 2024
Interest Rate 3.25 3.50 percent Oct 2024
Lending Rate 3.75 4.00 percent Oct 2024
Loans to Private Sector 1378679.30 1371709.20 KRW Billion Aug 2024
Money Supply M0 178672400.00 176777900.00 KRW Million Sep 2024
Money Supply M1 1240052.10 1229276.80 KRW Billion Sep 2024
Money Supply M2 4084611.50 4065280.50 KRW Billion Sep 2024
Money Supply M3 5557493.50 5515137.60 KRW Billion Sep 2024

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
3.25 3.50 5.25 0.50 1999 - 2024 percent Daily


News Stream
South Korea Cuts Rates for First Time in Over 4 Years
The Bank of Korea slashed its base rate by 25bps to 3.25% during the October meeting, marking the first reduction since May 2020 and aligning with market estimates. The move brought borrowing costs to their lowest in nearly two years, reflecting easing inflation, weakening economic output, and efforts to curb mortgage-fueled household debt. The board noted that short-term inflation expectations had dropped to 2.8%. Meantime, consumer inflation is projected to stay below 2% this year, down from August’s forecasts of 2.5%, while core inflation is steady at 2.0%. For 2025, headline and core inflation are expected to be consistent with earlier figures of 2.1% and 2.0%, despite factors like Middle East tensions, exchange rate fluctuations, and public utility adjustments. The committee said it will carefully assess the pace of further cuts, weighing trade-offs in policy. Regarding GDP, the economy is expected to grow 2.4% in 2024 and 2.1% in 2025, due to delayed recovery in domestic demand.
2024-10-11
South Korea Holds Rates, Cuts Slightly Outlooks for Inflation, GDP
The Bank of Korea kept its base rate unchanged at 3.5% for the 13th time at the August meeting, as widely expected. The move came amid conflicting economic signals where inflation eased but household debt mounted and house prices soared after recent government measures. The board noted short-term inflation expectations had fallen to the upper 2% range. Meanwhile, consumer inflation this year may reach the low 2% range, with an annual rate of 2.5%, slightly below the May forecast of 2.6%; and core inflation is steady at 2.2%. The committee added it would study the proper timing of a rate cut while maintaining a restrictive monetary policy stance. Regarding the GDP, the economy may expand by 2.4% in 2024, a bit lower than an earlier projection of 2.5%, due to the impact of transitory factors on the strong Q1 GDP. In 2025, growth is expected to be around 2.1%, the same as the prior forecast, aided by a recovery in consumption, the rise of the IT sector, and conditions in major countries.
2024-08-22
South Korea Holds Rates at 3.5% for 12th Straight Time
The Bank of Korea (BoK) maintained its base rate at 3.5% for the 12th straight time during the July 2024 meeting, as widely expected. Thursday's move came as the board needed more time to assess a slowdown in inflation and pay attention to the impacts of volatility in forex markets, housing prices in Seoul and its surrounding areas, and persistently high household debt. The board revealed that short-term inflation expectations have fallen to 3.0% as the annual inflation hit its lowest in 11 months of 2.4% in June. This year, the CPI could be slightly lower than the May forecast of 2.6%, with core inflation around 2.2%. The committee added that it would examine the timing of a rate cut while reiterating the need for inflation to stabilize around the target level in the medium term. Regarding the GDP, the economy is expected to expand around 2.5% in 2024, in line with earlier forecasts, supported by a gradual recovery in consumption, a favorable labor market, and higher export growth.
2024-07-11