Seoul, July 29 (IANS): Deposit rates in South Korea fell to the lowest level in history as Bank of Korea (BOK) cut its policy rate to an all-time low last month, central bank data showed on Wednesday.

Bank rates for new instalment savings averaged an annualised rate of 1.94 percent in June, down 0.07 percentage points from a month earlier, reported Xinhua news agency.

It was the lowest in history, falling below two percent for the first time. Average rates for time deposit declined 0.08 percentage points from a month earlier to 1.65 percent in June.

The record-low deposit rates came after the BOK lowered the benchmark interest rate by 25 basis points in June to an all-time low of 1.5 percent.

The bank cut the rate by the same extent in March this year and in August and October last year respectively.

Lending rates for new loans averaged an annual rate of 3.49 percent in June, down 0.07 percentage points from a month earlier.

Rates for mortgage loans fell 0.05 percentage points to 3.01 percent in the cited period. The rate for household loans slid 0.05 percentage points to 3.22 percent, with the figure for corporate loans sliding 0.1 percentage point to 3.61 percent.