South Korea Base Rate

The Base Rate is the reference policy rate applied in transactions between the Bank of Korea and financial institutions, such as repurchase agreements (RPs) and the Bank's liquidity adjustment deposits and loans. The Bank of Korea uses the Base Rate as a fixed bid rate for its sales of 7-day RPs and as the minimum bid rate for its purchases of 7-day RPs. The interest rates of liquidity adjustment deposits and loans are 100bp below and above the Base Rate, respectively. The Monetary Policy Board of the Bank of Korea meets eight times per year to determine the Base Rate. Until February 2008 the main policy rate was the overnight call rate target.