On Wednesday, data from the Bank of Korea (BOK) showed that South Korea’s money supply rose for the second consecutive month in July, despite a tightening policy. The M2, a key measure of the money supply which takes into account cash, demand deposits, and other easily convertible financial instruments, stood at 3,795 trillion won (US$2.86 trillion) in June, up 0.7 percent from the previous month.
The central bank has been implementing a tightening policy mode, with seven consecutive hikes in borrowing costs from April 2022 to January 2023, in an effort to control inflation in the country. Last month, the key interest rate was held steady at 3.5 percent for the fifth consecutive time.
sam@yna.co.kr
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