SEOUL, June 28 (Xinhua) -- Mortgage loan rate among South Korean banks fell last month on growing expectation for a policy rate cut, central bank data showed Friday.
The rate for home-backed loans averaged an annualized rate of 2.93 percent in May, down 0.05 percentage points from the previous month, according to the Bank of Korea (BOK).
It was the lowest in more than two and a half years amid the rising expectation for BOK to cut its target rate from the current 1.75 percent to tackle the economic slowdown.
Export, which accounts for about half of the export-driven economy, continued to slide for six straight months to May. It led to the weakening of facility investment and the lower industrial output.
The yield on five-year, AAA-rated bonds, issued by banks, averaged 1.88 percent in May, down from 1.94 percent in the prior month.
Meanwhile, the rate for all bank loans to households inched up 0.01 percentage point over the month to an annualized rate of 3.49 percent in May on strong demand for credit loans extended especially by internet-only banks.
The average rate for bank corporate loans declined 0.04 percentage points from a month earlier to 3.67 percent in May.
The rate for loans to big corporations slid 0.06 percentage points to 3.47 percent, with the reading for loans to small firms skidding 0.04 percentage points to 3.79 percent.
