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Rates for household loans edge up in Nov.

All News 12:00 December 28, 2017

SEOUL, Dec. 28 (Yonhap) -- Bank lending rates on new household loans and interest rates paid by banks on new deposits rose in November, central bank data showed Thursday.

The average interest rate on fresh household loans extended by local lenders stood at 3.59 percent last month, up 0.8 percentage point from a month earlier, according to the data by the Bank of Korea (BOK).

The average interest rate on new mortgages came to 3.39 percent in November, up 0.06 percentage point from October.

The BOK data came as the central bank raised the base rate to 1.5 percent from a record low of 1.25 percent on Nov. 29 for the first time in nearly six and a half years in a bid to tackle rising household debt in the country.

South Korea's overall household debt came to 1,419.1 trillion won (US$1,306 billion) at the end of September, although the growth pace has slowed over tighter lending regulations.

Meanwhile, the interest rate paid by banks on new savings reached an average 1.79 percent in November, up 0.16 percentage point from a month earlier.

The gap between the interest rates paid to and by banks came to 2.27 percent last month, staying unchanged from the previous month.


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