S. Korean banks' lending rate unchanged in March

South Korean banks' lending rate stood unchanged in March amid lingering expectations for policy rate cuts later this year, central bank data showed Monday.

The weighted average rate for new bank loans was an annualized 4.85 percent in March, unchanged compared with the previous month, according to the Bank of Korea (BOK).

The lending rate made no change last month after retreating for the past three months.

Expectations remained for the BOK to lower its key rate later this year following the expected rate cuts in the United States. The BOK had left its benchmark interest rate unchanged at 3.50 percent since January last year.

Rate for banks' new corporate loans declined 0.07 percentage points over the month to 4.96 percent in March.

The lending rate for big corporations slipped 0.10 percentage points to 5.01 percent, and the rate for small companies decreased 0.05 percentage points to 4.93 percent.

Rate for new bank loans to households added 0.01 percentage points to 4.50 percent in March compared with the previous month.

Mortgage loan rate for households dwindled 0.02 percentage points to 3.94 percent, and credit loan rate diminished 0.15 percentage points to 6.14 percent.

Rate for small household loans of less than 5 million won (3,620 U.S. dollars) spiked 0.23 percentage points to 7.25 percent last month, indicating the growing economic hardships among the poorest people.

The weighted average rate for fresh bank deposits shrank 0.05 percentage points over the month to an annualized 3.58 percent in March.