money supply-May

money supply-May

Money supply down for 3rd month in May amid tightening policy: BOK

SEOUL, July 14 (Yonhap) -- South Korea's money supply decreased for the third straight month in May amid tightening policy, central bank data showed Friday.

The country's M2, a key gauge of the money supply, stood at 3,785.4 trillion won (US$2.98 trillion) in May, down 0.3 percent, from a month earlier, according to the preliminary data from the Bank of Korea (BOK).

The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.

The BOK attributed the money supply fall in May to a decrease in money market funds and on-demand deposits.

The central bank has also been implementing its tightening policy mode, as the BOK delivered seven consecutive hikes in borrowing costs from April 2022 to January 2023 to tame soaring inflation in Asia's fourth-largest economy.

On Thursday, the central bank held its key interest rate steady at 3.5 percent for the fourth straight time.

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