South Korea's bank lending rates extend falls in February

Bank lending rates for new loans in South Korea fell for a second straight month in February moving in tandem with a record-low policy rate, central bank data showed Monday.
The average rate for new loans to households, companies and other organizations came in at 3.86 percent last month, falling 0.04 percentage point from the previous month, according to the preliminary data by the Bank of Korea (BOK).
The February reading marks a second consecutive month of decline following a brief 0.03 percentage point rise in December. The average lending rate has been mostly trending lower in line with the BOK's two rounds of rate cuts in August and October last year, aimed at spurring growth in Asia's fourth-largest economy.
By category, the average lending rate for corporate loans stayed unchanged at 4.02 percent, while that for households slumped 0.11 percentage point to 3.48 percent, according to South Korea's (Yonhap) News Agency.
The average savings deposit rate fell 0.05 percentage point to 2.04 point, according to the data.
The lending and deposit rates are expected to further slip as the BOK unexpectedly lowered the key rate by a quarter percentage point to a record-low of 1.75 percent for March.