▲ This file photo, taken July 18, 2023, shows information on a bank's loan programs at a lender in Seoul. (Yonhap)

lending rates-August

Banks' household lending rate down for 2nd month in August

SEOUL, Sept. 27 (Yonhap) -- Banks' household loan rate fell for the second straight month in August as the central bank has kept its key rate unchanged for months amid easing inflation and an economic slowdown, central bank data showed Wednesday.

Banks' household lending rate applied to new loans last month stood at 5.1 percent on average last month, down from 5.11 percent a month earlier, according to the preliminary data from the Bank of Korea (BOK).

Last month, the central bank held its key interest rate steady at 3.5 percent for the fifth straight time as it weighs a slowdown in growth amid moderating inflation. The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.

The rate banks charged for deposits also fell to 3.65 percent in August from 3.68 percent the previous month.

The spread on banks' lending and deposit rates widened to 1.45 percentage points, from 1.43 percentage points over the cited period, according to the data.

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