pokerallinrules|S. Korean banks' lending rate turns downward in June

SEOULpokerallinrules, July 31 (Xinhua) -- South Korean banks' lending rate turned downward in June on expectations for policy rate cuts later this yearpokerallinrules, central bank data showed Wednesday.

The weighted average rate for new bank loans was an annualized 4.71 percent in June, down 0.07 percentage points compared to the previous month, according to the Bank of Korea (BOK).

It shifted downward after rising 0.01 percentage point in May amid the lingering expectations for the central bank to cut its benchmark interest rate later this year.

The BOK had left its benchmark interest rate unchanged at 3.50 percent since January 2023.

Rate for banks' new corporate loans slipped 0.02 percentage points over the month to 4.88 percent in June.

The lending rate for big corporations added 0.01 percentage point to 5.00 percent, but the rate for small companies declined 0.06 percentage points to 4.79 percent.

Rate for new bank loans to households tumbled 0.23 percentage points to 4.26 percent in June compared with the previous month.

Mortgage loan rate for households dropped 0.20 percentage points to 3.71 percent, and credit loan rate went down 0.07 percentage points to 6.04 percent.

The weighted average rate for fresh bank deposits shrank 0.04 percentage points over the month to an annualized 3.51 percent in June.■