Korea Interest Rate
BOK holds fire for fourth consecutive meeting in July
At its meeting on 13 July, the Bank of Korea (BOK) kept the base rate unchanged at 3.50% for the fourth consecutive meeting. The decision was unanimous and matched market expectations.
The decision was driven by easing inflation, which fell for the fifth month running in June. In addition, pressure on the won has abated since May, reducing the need for the BOK to hike to protect the currency.
In its forward guidance, the BOK retained its hawkish bias, stating that it would “maintain a restrictive policy stance for a considerable time with an emphasis on ensuring price stability”. Most of our panelists expect the BOK to start cutting its policy rate in Q1 2024.
The next BOK meeting is scheduled for 24 August.
Korea Interest Rate Chart
This chart displays Policy Interest Rate (%) for Korea from 2013 to 2022.
Korea Interest Rate Data
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| BOK Base Rate (%, eop) | 1.75 | 1.25 | 0.50 | 1.00 | 3.25 |
| 3-Month KORIBOR (%, eop) | 1.90 | 1.51 | 0.81 | 1.41 | 4.04 |
| 10-Year Bond Yield (%, eop) | 1.95 | 1.68 | 1.71 | 2.25 | 3.73 |