South Korea’s Lending Rates Drop in March
(MENAFN) South Korea’s average bank lending rate dropped for the fourth consecutive month, driven by a continued decline in the nation's policy rate, according to data released by the central bank on Wednesday.
Figures from the Bank of Korea (BOK) revealed that the weighted average interest rate for new loans issued by banks slipped by 0.10 percentage points in March compared to February, reaching an annualized 4.36 percent. This marks a steady decrease since December of last year.
The ongoing downward trend follows the central bank’s move to lower its key interest rate by 0.25 percentage points to 2.75 percent in February. Similar rate cuts were also made in October and November of the previous year.
Interest rates on newly issued household loans in March edged down by 0.01 percentage points to 4.51 percent.
Mortgage rates for households dropped by 0.06 percentage points to 4.17 percent, while unsecured credit loan rates eased by 0.02 percentage points to 5.48 percent.
New corporate loan rates also moved lower, falling by 0.11 percentage points to 4.32 percent in March.
For large businesses, the lending rate slipped by 0.09 percentage points to 4.32 percent, while smaller enterprises saw a slightly steeper decrease of 0.14 percentage points to 4.31 percent.
Meanwhile, the average rate on newly accepted bank deposits declined by 0.13 percentage points over the same period, standing at an annualized 2.84 percent in March.
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