Part of Global Central Bank Rates on BankofCanadaOdds.com.
Bank of Korea Base Rate (South Korea)
- Last updated: — policy rate data and historical series refreshed automatically each day.
The Bank of Korea (BoK) uses the base rate as its primary policy interest rate to influence short-term funding conditions, inflation expectations, and financial conditions across South Korea’s economy. Policy decisions reflect evolving domestic activity, inflation trends, and financial stability considerations amid external risks.
Loading rate data...
*Data updated for
Loading chart data...
Note: The Base Rate is the reference interest rate set by the Bank of Korea’s Monetary Policy Board. It applies to transactions between the central bank and financial institutions, specifically serving as the reference for 7-day Repurchase Agreements (RPs). It is the primary tool used to control inflation and stabilize the Korean economy.
What is the Bank of Korea Base Rate?
The base rate is South Korea’s key monetary policy rate set by the Monetary Policy Board of the Bank of Korea. It serves as the benchmark for short-term interest rates and helps guide the stance of monetary policy by influencing borrowing costs and financial conditions across the economy.
Who decides the rate and what they’re trying to achieve?
The Monetary Policy Board of the Bank of Korea determines the base rate to achieve its medium-term inflation objective of 2 percent while considering risks to growth and financial stability. The inflation target framework is mandated under the Bank of Korea Act in consultation with the government.
Why track global policy rates?
Currency movements
Policy-rate differences between countries can drive capital flows, influencing exchange rates as investors seek higher expected returns.
Credit and funding conditions
Central bank rates affect short-term funding costs, which feed through to loans, bonds, and broader credit markets.
Market valuation cycles
Shifts in policy rates change discount rates and growth expectations, influencing equities, housing markets, and commodity prices.
Canada callout:
For Canadians, South Korea’s policy path is relevant as a benchmark for emerging Asia growth and inflation trends, which can influence global yield curves and risk sentiment that, in turn, affect broader expectations for Bank of Canada policy decisions.
Related South Korean benchmark rates
Overnight call rate (KRW)
The overnight call rate reflects actual interbank funding costs, often moving close to the base rate and offering a direct view of short-term money-market conditions in Korea.
- Frequently Asked Questions
Central Bank Rates
FAQs
It is South Korea’s policy interest rate set by the BoK’s Monetary Policy Board that anchors short-term money-market pricing and influences borrowing costs.
The Monetary Policy Board of the Bank of Korea sets the base rate to achieve price stability and support balanced economic growth.
South Korea’s inflation target is 2 percent over the medium term, guiding the Bank of Korea’s policy framework.
The Monetary Policy Board meets regularly throughout the year to assess economic and inflation data and may change the base rate based on evolving conditions.
No. Mortgage and lending rates are set by lenders, but these rates are influenced by the base rate through funding costs and market expectations.
Interest rate expectations influence capital flows and currency demand, so changes in policy or expectations can impact the KRW relative to global currencies.
In late 2025, the BoK held the base rate at 2.50 percent for multiple meetings amid concerns about a weakening won, housing market imbalances, and financial stability risks, suggesting that scope for further cuts is limited for now.
Some sources report announcement dates or effective dates differently; this page standardizes to the accepted base rate series as published by the BoK and market data providers.
Let’s Connect
Have a question about our BoC rate tools or insights? Send us a message and we’ll reply within one business day.
Response Time
<24 Hours
Average email response