Bank lending rates for new loans in South Korea tumbled to a new low last month, with the pace of the decline quickening from September, central bank data showed Thursday.
   
The average rate for new loans to households, companies and other organizations reached 4 percent in October, down 0.14 percentage point from the previous month, according to the Bank of Korea (BOK). It is the lowest level since the central bank began compiling the data in 1996.
  
The monthly fall marks the steepest decline since August this year when the average rate for such loans tumbled 0.18 percentage point from the previous month to 4.18 percent. 
   
The average lending rate for corporate loans slumped 0.14 percentage point to 4.14 percent, while that for households fell 0.12 percent percentage point to 3.64 percent. 
  
The average deposit rate also fell 0.1 percentage point over the one-month period to 2.18 percent.
   
The data comes as borrowing costs in South Korea have been trending lower in line with two rate cuts earlier this year. The central bank cut the base rate by a quarter percentage point respectively in August and October in efforts to bolster growth.
   
The base rate currently stands at a record low of 2 percent.

The next policy decision is set for Dec. 11. (Yonhap)