The Bank of Korea slashed its base rate by 25bps to 3.0% at the November meeting, marking the second straight month of rate reductions and defying market consensus of a pause. The decision brought borrowing costs to their lowest since October 2022, amid a further slowdown in inflation, easing household debt, and weak economic output. The board forecasted inflation to reach 2.3% this year and 1.9% next year, both lower than prior forecasts of 2.5% and 2.1%, each, due to exchange rate fluctuations and the impact of falling oil prices. Core inflation is seen to hit 2.2% this year, consistent with the prior forecast, and 1.9% next year. On the GDP front, the economy is expected to grow by 2.2% in 2024 and 1.9% in 2025, below August estimates of 2.4% and 2.1%, highlighting export challenges and a potential rise in global trade protectionism. The board said it will carefully assess the implications of monetary easing and weigh trade-offs to pursue the inflation target over the medium term. source: The Bank of Korea

The benchmark interest rate in South Korea was last recorded at 3 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 January of 2025.

The benchmark interest rate in South Korea was last recorded at 3 percent. Interest Rate in South Korea is expected to be 2.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations.




Calendar GMT Reference Actual Previous Consensus TEForecast
2024-08-22 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% 3.25% 3.25% 3.25%
2025-01-16 01:00 AM Interest Rate Decision 3.0% 3% 3%
2025-02-25 01:00 AM Interest Rate Decision
2025-04-17 01:00 AM Interest Rate Decision


Related Last Previous Unit Reference
Central Bank Balance Sheet 539459.40 562489.40 KRW Billion Oct 2024
Foreign Exchange Reserves 415600.00 415390.00 USD Million Dec 2024
Foreign Stock Investment 952016.80 861743.50 USD Million Dec 2023
Interbank Rate 3.19 3.22 percent Jan 2025
Interest Rate 3.00 3.25 percent Nov 2024
Lending Rate 3.50 3.50 percent Dec 2024
Loans to Private Sector 1393182.70 1383340.80 KRW Billion Oct 2024
Money Supply M0 179120900.00 178672400.00 KRW Million Oct 2024
Money Supply M1 1250576.30 1240052.10 KRW Billion Oct 2024
Money Supply M2 4110851.90 4084611.50 KRW Billion Oct 2024
Money Supply M3 5584918.90 5557493.50 KRW Billion Oct 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
3.00 3.25 5.25 0.50 1999 - 2024 percent Daily


News Stream
South Korea to Trim Further Base Rate in 2025 Amid Growth Pressures
The Bank of Korea (BoK) said it will lower further interest rates next year to ease downward pressure on economic growth. However, the pace of these reductions will depend on their effects on financial stability and the evolving domestic and global risk factors. In its "2025 Monetary and Credit Policy Direction,", released December 25, the central bank noted that while the annual inflation rate is expected to hold a stable trend, downside risks to the economy have heightened due to rising political uncertainty, intensifying overseas competition in key industries, and changes in global trade. Regarding financial stability, the BoK plans to improve early warning functions and promptly launch market stabilization measures as needed. On the forex side, it will address excessive volatility with more stabilization measures, ensure adequate foreign currency liquidity, and consider relaxing foreign exchange soundness regulations in collaboration with the government.
2024-12-26
Bank of Korea Vows to Ensure Market Stability
The Bank of Korea announced today that it will temporarily deploy measures to boost short-term liquidity in response to market volatility triggered by the brief declaration of martial law in the country. The central bank said in a statement that it has begun purchasing additional repurchase agreements from more financial institutions to enhance market liquidity. This move aligns with Finance Minister Choi Sang-mok's earlier pledge to provide unlimited liquidity support if necessary, following President Yoon Suk Yeol's unexpected declaration of martial law on Tuesday night. Markets have shown signs of stabilization since martial law was lifted after a parliamentary vote. The central bank remains optimistic that market sentiment will improve, citing South Korea's strong economic fundamentals. Financial authorities stated they will keep a close watch on the situation and take any necessary measures, including allocating KRW 10 trillion to a stock market stabilization fund.
2024-12-04
South Korea Unexpectedly Cuts Base Rate by 25Bps
The Bank of Korea slashed its base rate by 25bps to 3.0% at the November meeting, marking the second straight month of rate reductions and defying market consensus of a pause. The decision brought borrowing costs to their lowest since October 2022, amid a further slowdown in inflation, easing household debt, and weak economic output. The board forecasted inflation to reach 2.3% this year and 1.9% next year, both lower than prior forecasts of 2.5% and 2.1%, each, due to exchange rate fluctuations and the impact of falling oil prices. Core inflation is seen to hit 2.2% this year, consistent with the prior forecast, and 1.9% next year. On the GDP front, the economy is expected to grow by 2.2% in 2024 and 1.9% in 2025, below August estimates of 2.4% and 2.1%, highlighting export challenges and a potential rise in global trade protectionism. The board said it will carefully assess the implications of monetary easing and weigh trade-offs to pursue the inflation target over the medium term.
2024-11-28