SEOUL, Feb. 27 (Xinhua) -- South Korean banks' lending rate rose for the third straight month on lower expectations for additional policy rate cuts, central bank data showed Friday.
The weighted average rate for new bank loans gained 0.05 percentage points from a month earlier to an annualized rate of 4.24 percent in January, continuing to go up since November last year, according to the Bank of Korea (BOK).
The BOK left its benchmark interest rate unchanged at 2.5 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 massive household debts and the still high South Korean won versus the U.S. dollar exchange rate.
The rate for fresh bank loans to households swelled 0.15 percentage points to 4.5 percent in January compared to the previous month.
Mortgage loan rate for households added 0.06 percentage points to 4.29 percent, but credit loan rate declined 0.32 percentage points to 5.55 percent.
The rate for banks' new corporate loans fell 0.01 percentage point over the month to 4.15 percent in January.
The lending rate for large companies inched up 0.01 percentage point to 4.09 percent, but the rate for small and medium firms retreated 0.03 percentage points to 4.21 percent.
The weighted average rate for new bank deposits was down 0.12 percentage points over the month to an annualized 2.78 percent in January. ■
