The seasonally-adjusted M2, or broad money, gained 0.6 percent to 4,037.6 trillion won (2.95 trillion U.S. dollars) in June compared to the previous month, continuing to rise since June last year, according to the Bank of Korea (BOK).
The continued expansion was attributed to strong demand for short-term financial instruments such as time deposits, profit-making securities and money market funds (MMF).
The M1, or narrow money, declined 0.1 percent in June on a monthly basis, keeping a downward trend for the third consecutive month.
The BOK had left its key rate unchanged at 3.50 percent since January last year, after increasing it by 3.0 percentage points for the past one and a half years.
The M1 refers to currency in circulation, demand deposits and transferable savings deposits 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, increased 0.5 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, advanced 0.6 percent.
The Lf includes financial products with a maturity of over 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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