SEOUL, March 29 (Xinhua) -- South Korean banks' lending rate fell for the third consecutive month in February on expectations for policy rate cuts later this year, central bank data showed Friday.

The weighted average rate for new bank loans dipped 0.19 percentage points from a month earlier to an annualized 4.85 percent in February, continuing to slide since December last year, according to the Bank of Korea.

Expectations emerged for the central bank to lower its key rate later this year following expected rate cuts in the United States. South Korea's central bank had left its policy rate unchanged at 3.50 percent since January last year.

Rate for banks' new corporate loans retreated 0.19 percentage points over the month to 5.03 percent in February.

Rate for big corporations slipped 0.05 percentage points to 5.11 percent, and rate for small companies decreased 0.30 percentage points to 4.98 percent.

In addition, rate for new bank loans to households declined 0.19 percentage points to 4.49 percent in February compared with the previous month.

Mortgage loan rate for households dwindled 0.03 percentage points to 3.96 percent, and credit loan rate diminished 0.09 percentage points to 6.29 percent.

The weighted average rate for fresh bank deposits shrank 0.04 percentage points over the month to an annualized 3.63 percent in February. Enditem

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