On Tuesday, the Bank of Korea (BOK) reported that South Korea’s money supply rose for the third consecutive month in August despite the central bank’s efforts to control inflation with a tightening policy.
The M2, a key indicator of the money supply which includes cash, demand deposits and other easily convertible financial instruments, was at 3,829 trillion won (US$2.83 trillion) in August, a 0.2 percent increase from the previous month. This follows a 0.7 percent gain in July and a 0.3 percent rise in June.
The BOK has been raising borrowing costs since April 2022, with seven consecutive hikes to January 2023, in an effort to reduce inflation. In August, the key interest rate was kept at 3.5 percent for the fifth consecutive time.
sam@yna.co.kr
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