S.Korea's money supply growth hits 8-month low in February

Source: Xinhua| 2019-04-11 14:35:57|Editor: Xiaoxia
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SEOUL, April 11 (Xinhua) -- Money supply growth in South Korea hit the lowest in eight months in February on the reduced household debts, central bank data showed Thursday.

The M2, called broad money, grew 6.2 percent in February from a year earlier, marking the lowest gain since June last year, according to the Bank of Korea (BOK).

It came as demand for household debts weakened amid the falling number of home transactions. The government unveiled a set of measures to control speculative investment in the real estate market.

The M1, dubbed narrow money, added 1.9 percent in February from a year ago.

The M1 refers to the currency in circulation, demand deposit, transferable savings deposits equivalent to cash. The M2 adds money market fund, time deposit and financial products that mature in less than two years to M1.

The liquidity of financial institutions, called Lf, expanded 7.1 percent in the cited period. The year-over-year increase of liquidity aggregate, the broadest measure of money supply, was 6.7 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.