lending rates-June

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

lending rates-June

Banks' household lending rate up for 2nd month in June

SEOUL, July 28 (Yonhap) -- Banks' household loan rate rose for a second straight month in June as the Bank of Korea (BOK) has taken a breather in its rate hike campaign amid easing inflation and an economic slowdown, central bank data showed Friday.

Banks' household lending rate applied to new loans last month stood at 5.17 percent on average, up from 5.12 percent a month earlier, according to the preliminary data from the BOK.

Earlier this month, the BOK held its key interest rate steady at 3.5 percent for the fourth straight time following rate freezes in February, April and May. 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 seven consecutive hikes in borrowing costs from April 2022 to January 2023.

The rate banks charged for deposits also rose to 3.69 percent in June from 3.56 percent the previous month.

The spread on banks' lending and deposit rates narrowed to 1.48 percent from 1.56 percent over the cited period.

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