The weighted average rate of new loans by deposit-taking banks to households stood at an annualized rate of 4.14 percent in May, up 0.09 percentage points from the previous month, according to the Bank of Korea (BOK).
It logged the highest in more than eight years since January 2014, driven by rising expectations for the faster-than-forecast interest rate hikes.
The central bank has raised its key rate by 25 basis points five times since August last year. Expectations increased for the BOK to hike the rate by a half percentage point in July.
The mortgage loan rate was unchanged at 3.90 percent in the cited month, but the credit loan rate surged 0.16 percentage points to 5.78 percent, the highest since January 2014.
The weighted average rate for new corporate loans advanced 0.15 percentage points from a month earlier to 3.60 percent in May, marking the highest in three years since May 2019.
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