According to the Bank of Korea (BOK), the average rate of new loans issued in September was 5.17%, a slight rise of 0.07% from the previous month. This increase follows a period of the central bank freezing its key rate for months due to easing inflation and a slowing economy.
In August, the BOK held the policy rate at 3.5% for the fifth consecutive time, having raised it seven times from April 2022 to January 2023. This month, the rate was frozen again.
The rate for bank deposits also rose to 3.81% from 3.65% over the same period, resulting in a spread of 1.36 percentage points between the lending and deposit rates.
This file photo, taken July 18, 2023, shows information on a bank's loan programs at a lender in Seoul. (Yonhap)
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