Household lending rates at banks have topped five percent to hit a ten-year high.

According to the Bank of Korea(BOK) on Friday, bank interest rates on private loans stood at an average five-point-15 percent in September, up zero-point-39 percentage points from a month earlier.

That is the highest level since a five-point-two percent average posted in July 2012.

The markup in lending rates tracks the recent back-to-back benchmark interest hikes by the BOK monetary policy board as part of the central bank’s bid to curb inflationary pressure.

The mortgage lending rate rose zero-point-44 percentage points on-month to four-point-79 percent, the highest since four-point-85 percent in May 2012.

The rate of unsecured loans also surged zero-point-38 percentage points to six-point-62 percent, the highest since March 2013.