Interest on loans offered by commercial banks is rapidly rising, jumping by as much as zero-point-two percentage points in a 24-hour period, a surge described as “highly unusual” by those in the financial sector on Tuesday.
The lending rate at one bank ranged from three-point-68 to four-point-68 percent as of Monday, a rise of zero-point-21 percent from Sunday.
The upward swing was seen at other banks too, with interest for home-backed loans at KB Kookmin Bank, Shinhan Bank, Hana Bank and Woori Bank ranging from three-point-97 to five-point-377 percent as of Monday, up around one percentage point in two months.
The acceleration can be attributed to the central bank’s rate hike and inflationary pressure.
A representative at one of the banks forecast the interest rate to further rise to six percent by the year’s end should the Bank of Korea(BOK) hike up the key rate by zero-point-25 percentage points later this month.
Source: KBS World Radio