Latest bank decision: At its meeting on 27 May, the Central Bank decided to hold the Official Cash Rate (OCR)...
BOK Base Rate in Korea
South Korea's central bank policy rate declined from 2014 to 2020 in order to stimulate growth and inflation. Post-pandemic, there was a gradual shift towards higher interest rates in order to tame above-target price pressures, before another easing cycle began in 2024.
The bok base rate ended 2024 at 3.00%, compared to the end-2023 value of 3.50% and the figure a decade earlier of 2.00%. It averaged 1.86% over the last decade. For more interest rate information, visit our dedicated page.
Korea Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Korea from 2014 to 2025.
Source: Macrobond.
Korea Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| BOK Base Rate (%, eop) | 1.00 | 3.25 | 3.50 | 3.00 | 2.50 |
| 3-Month KORIBOR (%, eop) | 1.41 | 4.04 | 3.88 | 3.36 | 2.68 |
| 10-Year Bond Yield (%, eop) | 2.25 | 3.73 | 3.18 | 2.86 | 3.08 |
Central Bank stands pat in April
Decision in line with market expectations: At its meeting on 10 April, the Bank of Korea (BOK) decided to keep the base rate unchanged at 2.50%. The decision was in line with market expectations and marked the seventh successive hold.
Uncertain outlook drives decision: The BOK cited the volatile international outlook—specifically war in the Middle East—as a reason to stay put. The BanK wished to wait for more clarity about the impact of conflict on domestic inflation and GDP growth.
Bank likely to leave rate unchanged this year: Most of our panelists expect the Bank to stand pat throughout 2026. With inflation expected to average close to the 2.0% target and GDP growth set to be solid, the BOK should be under limited pressure to move the base rate in either direction. However, some panelists see hikes and a few see cuts. The Bank will reconvene on 28 May.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Korean interest rate projections for the next ten years from a panel of 22 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Korean interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Korean interest rate projections.
Want to get access to the full dataset of Korean interest rate forecasts? Send an email to info@focus-economics.com.
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