Lower base rate, lower household and corporate loan rates in March

[Infostock Daily= Reporter Lee Kang-wook] Bank of Korea's interest rate cuts and low interest rate policy loans led to a record low in household loans and corporate lending rates last month.

According to the Bank of Korea, the average interest rate on bank loans last month was 2.91%, down 0.17 percentage points from the previous month.

This is the lowest level since 1996 when the relevant statistics were compiled.

The BOK explained that the market interest rate, which is the basis for calculating the loan interest rate, has fallen and the low interest rate policy loan for the response to the new coronavirus infection (Corona 19 or COVID-19) has been affected by the expansion.

Last month, corporate lending rates fell to 2.94 percent a year, down 0.25 percentage points from the previous month.

Household lending rates were 2.88 percent a year, down 0.02 percentage points from the previous month.

Deposit rates also showed the lowest level ever.

The interest rate on bank savings was down 0.16 percentage points to 1.27%, the lowest since the statistics were made.

In March, the proportion of products with interest rates of 0% accounted for 10.6% of new subscription deposits.

On the other hand, the proportion of new products with interest of 2% per annum decreased to 0.3%.

The balance-based bank margin (difference between loan rates and savings-type interest rates) was 2.16 percentage points, down 0.02 percentage points.

Earlier, the Bank of Korea held a temporary monetary policy committee on March 16, lowering the benchmark interest rate from 1.25% to 0.75%.

Reporter Lee Kang-wook gaguzi@naver.com