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| ▲ This file photo, taken July 18, 2023, shows information on a bank's loan programs at a lender in Seoul. (Yonhap) |
lending rates-July
Banks' household lending rate down in July
SEOUL, Aug. 30 (Yonhap) -- Banks' household loan rate fell in July as the central bank has taken a breather in its rate hike campaign amid easing inflation and an economic slowdown, central bank data showed Wednesday.
Banks' household lending rate applied to new loans last month stood at 5.11 percent on average, down from 5.17 percent a month earlier, according to the preliminary data from the Bank of Korea (BOK).
Earlier this 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.
This marked the fifth straight time that the BOK has stood pat following rate freezes in February, April, May and July. The rate freezes came after the BOK delivered seven consecutive rate hikes from April 2022 to January 2023.
Banks' lending rates have been soaring as the BOK delivered the seven consecutive hikes.
The rate banks charged for deposits also fell to 3.68 percent in July from 3.69 percent the previous month.
The spread on banks' lending and deposit rates narrowed to 1.43 percent, down 0.05 percentage point over the cited period.
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