SEOUL, Feb. 17 (Xinhua) — South Korea’s money supply kept growing in December amid the record-low policy rate, central bank data showed Wednesday.
The M2, or broad money, came in at 3,191.3 trillion won (2.88 trillion U.S. dollars) in December, up 9.8 percent from a year earlier, according to the Bank of Korea (BOK).
The money supply continued to rise as the BOK left its benchmark interest rate unchanged at a record low of 0.50 percent since May last year.
The M1, or narrow money, surged 25.6 percent in December from a year ago.
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 to M2.
The liquidity on financial institutions, called Lf, gained 8.4 percent in the cited month. The year-over-year expansion of liquidity aggregate, the broadest measure of money supply, was 8.3 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. Enditem