Rising interest rates set to deal blow to Korean households
Posted : 2021-05-10 17:04
By Anna J. Park
Reflecting global markets expectations for a rise in interest rates in the near future, local banks have continued to increase their rates on credit (non-secured) loans and mortgages, despite the Bank of Korea (BOK) keeping its key interest rate frozen at 0.5 percent for over a year.
The lowest interest rate offered on one-year loans by the four major banks here ― KB Kookmin, Shinhan, Hana and Woori ― stood at between 2.57 percent and 3.62 percent Monday. This is 0.58 percentage points higher than the lowest rate offered by them last July when their interest rate band stood at between 1.99 percent and 3.53 percent.
Publishing date: Feb 24, 2021 • February 24, 2021 • 1 minute read •
Article content
SEOUL South Korea’s central bank kept interest rates steady on Thursday, maintaining support for a fragile economic recovery while guarding against upward pressure on bond yields from the government’s massive stimulus package.
The Bank of Korea held the base rate at a historic low of 0.5%, as expected by all 27 analysts in a Reuters poll.
We apologize, but this video has failed to load.
Try refreshing your browser, or S.Korea c.bank holds fire on rates, investors eye bond purchase plan Back to video
It also raised this year’s inflation outlook to 1.3% from 1.0% previously, and kept its growth outlook at 3.0%.