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

SEOUL
2022-05-12 13:21

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SEOUL, May 12 (Xinhua) -- South Korea's money supply kept a double-digit growth in March owing to the still low policy rate, central bank data showed Thursday.

The M2, or broad money, amounted to 3,658.5 trillion won (2.9 trillion U.S. dollars) in March, up 10.8 percent from the same month last year, according to the Bank of Korea (BOK).

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

The BOK lifted its policy rate by a quarter percentage point to 1.25 percent in January.

The M1, or narrow money, advanced 11.3 percent in March 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, called Lf, gained 9.1 percent in the cited month. The year-over-year increase of liquidity aggregate, the broadest measure of money supply, was 8.5 percent.

The Lf 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 Lf.
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