SEOUL: South Korea’s money supply grew for the fourth successive month due to higher demand for deposits and securities, central bank data showed on Tuesday.
The seasonally-adjusted M2, or broad money, gained 0.5 percent in September from a month earlier after rising 0.3 percent in June, 0.7 percent in July and 0.2 percent in August, according to the Bank of Korea (BOK).
The continued expansion was attributed to stronger demand for profit-making securities, money market funds (MMF) and bank savings deposits.
The BOK had left its benchmark interest rate unchanged at 3.50 percent since January after hiking the rate by 3.0 percentage points for the past one-and-a-half years.
The M1, or narrow money, inched down 0.1 percent in September on a monthly basis after reducing 0.2 percent in the previous 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, increased 0.3 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, slipped 0.2 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.