Seoul: South Korea's money supply saw an increase for the fourth straight month in July, driven by a rise in deposits and stock fund inflows, as demonstrated by data from the central bank released on Tuesday.
According to Yonhap News Agency, the country's M2, a significant indicator of the money supply, reached 4,344.3 trillion won (US$3.13 trillion) in July, marking a 0.8 percent rise from the previous month, based on preliminary data from the Bank of Korea (BOK). This figure has been on the rise since April, reflecting a continued upward trend in the nation's money supply.
The M2 measurement encompasses cash, demand deposits, and other financial instruments that are easily convertible. The recent month-on-month increase is attributed to a rise in deposits and an influx of stock funds.
In an effort to maintain financial stability amidst ongoing concerns about escalating housing prices and household debt, South Korea's central bank maintained its benchmark interest rate at 2.5 percent for the second consecutive month. In contrast, the BOK had decreased its base rate by a quarter percentage point in May.