Bank interest rates offered on time deposits have dropped below one percent for the first time ever while the interest charged on household loans has also hit an all-time low.

According to a Bank of Korea tally, the average rate on fresh deposits in the month of June came to zero-point-89 percent, down 18 basis points from May. A figure below one percent is the lowest since related data were compiled in 1996.

This comes after the BOK lowered its policy rate to a record low of half a percent back in May. 

The average interest rate charged on new bank loans also fell one percentage point to two-point-72 percent in June. The rate on household loans dropped to a record low of two-point-67 percent. 

The lending rate on corporate loans has also fallen from two-point-83 to two-point-75 percent, also the lowest to date.