South Korea's bank loan rate to households rises

Published: November 28, 2018 14:50:23 | Updated: November 30, 2018 13:40:19

South Korea's bank loan rate to households rose last month on the expected policy rate hike, the Bank of Korea (BOK) data showed Wednesday.

According to the central bank, the annualised rate for fresh bank loan to households averaged 3.64 per cent in October, up 0.02 percentage points from the previous month.

It ended the third consecutive month of decline through September amid the rising expectations for the central bank’s rate increase in November, reports Xinhua.

The BOK was slated to hold its rate-setting meeting Friday. According to a Korea Financial Investment Association survey of 200 fixed-income experts, 79 per cent predicted a rate hike this month.

Rate for mortgage loan gained 0.02 percentage points over the month to 3.31 per cent in October, with the rate for credit loan picking up 0.06 percentage points to 4.45 per cent.

Rate for bank loan to companies added 0.03 percentage points to 3.65 per cent in the cited period.

The rate for big corporations jumped 0.21 percentage points to 3.42 per cent, but the figure for loan to small companies shed 0.04 percentage points to 3.84 per cent due to the government's support policy.

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