SEOUL, Nov. 26 (Xinhua) -- South Korean banks' lending rate fell for the second consecutive month amid lingering expectations for a lower policy rate, central bank data showed Wednesday.
The weighted average rate for new bank loans dipped 0.01 percentage points from a month earlier to an annualized rate of 4.02 percent in October after slipping 0.03 percentage points in the previous month, according to the Bank of Korea (BOK).
The BOK cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year.
Expectations remained for the BOK's additional interest rate cuts early next year.
The rate for banks' new corporate loans declined 0.03 percentage points over the month to 3.96 percent in October.
The lending rate for large companies advanced 0.04 percentage points to 3.95 percent, but the rate for small and medium firms retreated 0.09 percentage points to 3.96 percent.
The rate for fresh bank loans to households gained 0.07 percentage points to 4.24 percent in October compared to the previous month.
Mortgage loan rate for households added 0.02 percentage points to 3.98 percent, but credit loan rate tumbled 0.12 percentage points to 5.19 percent.
The weighted average rate for new bank deposits was up 0.05 percentage points over the month to an annualized 2.57 percent in October. ■
