April 27, 2024
Finance
Average interest rates rise in Nov.
[THE INVESTOR] South Korea’s market interest rates continued to rise in November amid expectations of the incoming US administration’s stimulus policy, central bank data showed on Dec. 28.
The local banks’ average interest rate for new savings deposits came at 1.51 percent that month, up 0.1 percentage point from October, according to the Bank of Korea or BOK. The rate on fresh loans gained 0.07 percentage point on-month to 3.36 percent.
The increase in rates adds pressure on South Korean households riddled with a mountain of debt. Household credit here totaled 1,295.8 trillion won (US$1,072 billion) as of end-September, rising 11.2 percent from a year earlier.
The BOK cut down the benchmark rate to a record-low of 1.25 percent in June and has since kept it on hold, but market rates have been on a steady rise in recent months.
(theinvestor@heraldcorp.com)
The local banks’ average interest rate for new savings deposits came at 1.51 percent that month, up 0.1 percentage point from October, according to the Bank of Korea or BOK. The rate on fresh loans gained 0.07 percentage point on-month to 3.36 percent.
The increase in rates adds pressure on South Korean households riddled with a mountain of debt. Household credit here totaled 1,295.8 trillion won (US$1,072 billion) as of end-September, rising 11.2 percent from a year earlier.
The BOK cut down the benchmark rate to a record-low of 1.25 percent in June and has since kept it on hold, but market rates have been on a steady rise in recent months.
(theinvestor@heraldcorp.com)
