S.Korea's money supply continues to grow in August

Source: Xinhua| 2019-10-15 15:17:54|Editor: xuxin
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SEOUL, Oct. 15 (Xinhua) -- South Korea's money supply continued to grow in August after the policy rate cut in the previous month, central bank data showed Tuesday.

The M2, called broad money, gained 6.8 percent in August from a year earlier, after rising 6.6 percent in the previous month, according to the Bank of Korea (BOK).

The continued growth came after the BOK lowered its target rate from 1.75 percent to 1.50 percent in July.

The M1, dubbed narrow money, was up 4.7 percent in August, after increasing 3.8 percent in July.

The M1 refers to the currency in circulation, demand deposit, 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 M1.

The liquidity of financial institutions, called Lf, expanded 8.2 percent in the cited period. The year-over-year increase of liquidity aggregate, the broadest measure of money supply, was 7.6 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.