Home Business BOK raises key interest rate to 10 a year… The era of zero interest rates has just come to an end

BOK raises key interest rate to 10 a year… The era of zero interest rates has just come to an end

by news dir

Photo = Hankyung DB

On the 25th, the Bank of Korea raised the base rate by 0.25 percentage points from 0.75% per annum to 1.0% per annum. It is the first time in three months since the base rate was raised from 0.5% to 0.75% in August. The ‘0% interest rate era’ that has been running since March last year has come to an end in response to COVID-19.

On March 16, last year, the BOK lowered the base rate by 0.5 percentage points from 1.25% to 0.75%. The rate cut at that time ushered in an era of ‘0% interest rates’ for the first time in history. This was an emergency measure to prevent the spread of COVID-19 into an economic crisis. In May of last year, the base rate was again lowered from 0.75% per annum to 0.5% per annum.

By Kim Ik-hwan, staff reporter [email protected]

ⓒ Hankyung.com, unauthorized reprinting and redistribution prohibited

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