Seoul: The benchmark rate for banks' mortgage loans in South Korea experienced its most significant rise in three years this November, marking the third consecutive monthly increase, as revealed by recent data.

According to Yonhap News Agency, the Cost of Funds Index (COFIX), which serves as a benchmark lending rate for mortgage loans, reached 2.81 percent last month. This figure represents an increase of 0.24 percentage points from the previous month, as per the data from the Korea Federation of Banks.

COFIX is derived from the funding costs of eight domestic banks in South Korea, including prominent institutions such as Nonghyup Bank, Shinhan Bank, Woori Bank, and Citibank Korea. The recent uptick in COFIX reflects the broader trends in the South Korean financial landscape.

At the end of last month, the Bank of Korea (BOK) opted to keep its benchmark interest rate steady at 2.5 percent. This decision was made to maintain financial stability in the face of a weakened local currency and an unstable housing market. This marks the fourth consecutive decision to hold the rate, despite the central bank's ongoing easing cycle.

Since October of the previous year, the BOK has reduced the key rate by a cumulative 100 basis points from 3.5 percent, in an apparent bid to bolster economic growth. The central bank's actions highlight the challenges faced by South Korea's economy amid global economic uncertainties.