Banks' deposit interest rate falls to record low of 1.97%

By Park Sae-jin Posted : November 27, 2014, 17:23 Updated : November 27, 2014, 17:23

 

South Korean banks' average deposit interest rate fell to a record low of 1.97 percent in October, down 0.04 percentage point from the previous month, the central bank said Thursday.

The deposit rate has continued to drop since May 2012 when the rate stood at 3.06 percent.

Banks' lending rate was also down by 0.14 percentage point to a record low of 4.00 percent, the Bank of Korea (BOK) said.

The rate cuts came after the central bank lowered the benchmark rate by 0.25 percentage point to 2 percent in mid-October in a move to bolster growth momentum. It was the second base rate cut this year. The rate was reduced by 0.25 percentage point to 2.25 percent in mid-August.
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