Seoul: The average lending rate of major banks in South Korea increased for the third consecutive month in November, data showed Monday.

According to Yonhap News Agency, COFIX, or the Cost of Funds Index, a benchmark lending rate for mortgage loans, rose to 2.81 percent last month, reflecting an increase of 0.24 percentage points from the previous month.

COFIX is calculated based on the funding costs of eight domestic banks in South Korea, which include Nonghyup Bank, Shinhan Bank, Woori Bank, and Citibank Korea. The index serves as a crucial indicator for determining mortgage loan rates across the nation.

Late last month, the Bank of Korea (BOK) opted to keep its benchmark interest rate unchanged at 2.5 percent. This decision was made to safeguard financial stability amidst a weakened local currency and an unstable housing market. This marked the fourth consecutive decision to hold the rate steady, even as the central bank continues within an easing cycle.

Since October last year, the BOK has reduced the key interest rate by a cumulative 100 basis points from 3.5 percent. This strategy appears to be an effort to bolster economic growth amid ongoing financial challenges.