SEOUL, Aug. 26 (Xinhua) -- South Korean banks' lending rate turned downward last month due to lower corporate borrowing costs that offset a gain for household loans, central bank data showed Wednesday.
The weighted average rate for new bank loans dipped 0.04 percentage points from a month earlier to an annualized rate of 4.27 percent in July, shifting downward from an increase of 0.12 percentage points in the previous month, according to the Bank of Korea (BOK).
The rate for banks' new corporate loans declined 0.07 percentage points to 4.20 percent in July on a monthly basis.
The lending rate for large companies ticked up 0.01 percentage point to 4.18 percent, driven by a growth in short-term market interest rates, while the rate for small and medium enterprises tumbled 0.16 percentage points to 4.22 percent.
Amid rising inflationary pressure, the BOK raised its benchmark interest rate by 25 basis points to 2.75 percent in July, turning toward monetary tightening in about three and a half years since January 2023.
The rate for fresh bank loans to households surged 0.14 percentage points over the month to 4.64 percent in July.
Mortgage loan rate for households swelled 0.12 percentage points to 4.48 percent, and credit loan rate soared 0.25 percentage points to 5.97 percent.
The weighted average rate for new bank deposits was up 0.13 percentage points over the month to an annualized 3.21 percent in July. ■