Tue, 17 May 2022

SEOUL, Jan. 12 (Xinhua) -- South Korea's money supply kept a double-digit growth in November 2021 owing to the still low policy rate, central bank data showed Wednesday.

The M2, or broad money, came to 3,589.1 trillion won (3 trillion U.S. dollars) in November, up 12.9 percent from a year earlier, according to the Bank of Korea (BOK).

The broad money continued to rise in double figures as the benchmark interest rate remained low.

The BOK raised its key rate from a record-low of 0.5 percent to 0.75 percent in August, before lifting it further to 1 percent in November.

The M1, or narrow money, advanced 17.6 percent in November on a yearly basis.

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.

The liquidity of financial institutions, called Lf, gained 10.6 percent in the cited month. The year-over-year increase of liquidity aggregate, the broadest measure of money supply, was 9.8 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.

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