Commodities Buzz: S.Koreas household lending rate hits 44-month high on rate hike expectations

Bank lending rate for South Korean households hit a 44-month high last month on rising expectations for the policy rate hike in the near future, central bank data showed Wednesday. Rates for new bank loans averaged an annualized rate of 3.68 percent in May, up 0.03 percentage points from the previous month, according to the Bank of Korea (BOK).

Lending rate for household debts gained 0.06 percentage points from a month earlier to 3.75 percent in May, the highest since September 2014. The higher lending rate came as the BOK raised its benchmark rate by 25 basis points in November last year to 1.5 percent. It was the first rate increase in almost six and a half years. Pressures increased on the BOK to lift its policy rate further as the U.S. Federal Reserve increased its target rate to a range of 1.75-2.00 percent in June.