Seoul [South Korea], December 16: South Korea's money supply rose for the seventh consecutive month amid the lingering expectations for additional policy rate cuts, central bank data showed Tuesday.
The seasonally-adjusted M2, or broad money, gained 0.9 percent to 4,471.6 trillion won (3.04 trillion U.S. dollars) in October compared to the previous month, continuing to go up since April, according to the Bank of Korea (BOK).
The central bank cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after lowering it by the same basis points in October and November last year.
Expectations remained for further rate cuts early next year.
The M1, or narrow money, grew 0.2 percent in October on a monthly basis after expanding 1.4 percent in the prior month.
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, swelled 0.6 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, increased 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.
Source: Xinhua
