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S.Korea's money supply keeps double-digit growth in February

SEOUL
2022-04-12 13:29

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SEOUL, April 12 (Xinhua) -- South Korea's money supply kept a double-digit growth in February amid the still low policy rate, central bank data showed Tuesday.

The M2, or broad money, stood at 3,662.6 trillion won (about 3 trillion U.S. dollars) in February, up 11.8 percent from the same month of last year, according to the Bank of Korea (BOK).

The broad money continued to rise in double figures as the benchmark interest rate remained at a low level.

The BOK lifted its policy rate by a quarter percentage point to 1.25 percent in January, after raising the rate by 25 basis points in August and November last year.

The M1, or narrow money, advanced 11.6 percent in February on a yearly basis.

The M1 refers to currency in circulation, demand deposit and transferable savings deposit equivalent to cash. The M2 adds money market fund, time deposit and financial products that mature in less than two years.

The liquidity of financial institutions gained 9.9 percent in the cited month. The year-over-year increase of liquidity aggregate, the broadest measure of money supply, was 9.5 percent.

The liquidity of financial institutions includes financial products with a maturity of more than two years and liquidity at insurers and brokerages along with M2. The liquidity aggregate adds state and corporate bonds to the liquidity of financial institutions.
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