The Bank of Korea’s base-rate hike has raised both deposit and lending rates. In September, 10.6% of new bank term deposits paid annual rates of at least 4%, up 10.1 percentage points from August and the first double-digit share in two years and nine months. Deposits paying 3% or more represented 81.4% of new term deposits, while the average rate rose to 3.39% from 2.52% a year earlier. At the same time, only 9.6% of new household loans carried rates below 4%, down from 57.6% a year earlier, while loans at 5% or more increased to 31.6%. The average new household-loan rate reached 4.96%. Variable-rate mortgages (loans whose rates can reset) made up 65.8% of new housing loans, potentially raising future repayment burdens if rates rise further. Bank of Korea Governor Shin Hyun-song said during an October 23 parliamentary audit that returning easily to the ultra-low-rate era would be difficult.