The M2, or broad money, gained 2.3 percent in May from a year earlier, after expanding 3.2 percent in the previous month, according to the Bank of Korea (BOK).
The central bank had left its policy rate unchanged at 3.50 percent since January, after raising it by 3.0 percentage points for the past one and a half years.
The M1, or narrow money, dropped 13.8 percent in May on a yearly basis, keeping a downward trend for the ninth consecutive month.
The M1 refers to currency in circulation, demand deposit, and transferable savings deposit equivalent to cash. The M2 adds money market funds, time deposits, and financial products that mature in less than two years.
The liquidity of financial institutions, called Lf, climbed 2.9 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, increased 2.1 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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