SEOUL, Jan. 27 (Xinhua) -- South Korean banks' lending rate rose for the second consecutive month due to lower expectations for additional policy rate cuts, central bank data showed Tuesday.
The weighted average rate for new bank loans gained 0.04 percentage points from a month earlier to an annualized rate of 4.19 percent in December 2025 after going up 0.13 percentage points in the previous month, according to the Bank of Korea (BOK).
The BOK left its benchmark interest rate unchanged at 2.50 percent after reducing it by 25 basis points in February and May of 2025 and in October and November of 2024.
Expectations weakened for the BOK's additional interest rate cuts on the back of the local currency's deprecation to the U.S. dollar and the massive household debts.
The rate for banks' new corporate loans advanced 0.06 percentage points over the month to 4.16 percent in December.
The lending rate for large companies climbed 0.02 percentage points to 4.08 percent, while the rate for small and medium firms mounted 0.10 percentage points to 4.24 percent.
The rate for fresh bank loans to households rose 0.03 percentage points to 4.35 percent in December compared to the previous month.
Mortgage loan rate for households grew 0.06 percentage points to 4.23 percent, while credit loan rate soared 0.41 percentage points to 5.87 percent.
The weighted average rate for new bank deposits was up 0.09 percentage points over the month to an annualized 2.90 percent in December. ■
