ID :
212296
Wed, 10/12/2011 - 06:55
Auther :
Shortlink :
https://oananews.org//node/212296
The shortlink copeid
S. Korea's money supply growth hits 5-month high in Aug.
SEOUL (Yonhap) - South Korea's money supply grew at its steepest pace in five months in August mainly because bank lending remained solid, the central bank said Wednesday.
The country's M2, a narrow measure of the money supply, reached 1,719.4 trillion won (US$1.46 trillion) in August, up 4 percent from a year earlier, according to the Bank of Korea (BOK).
The August data marked the fastest growth since 4.3 percent on-year expansion tallied in March.
After the M2 growth hit a seven-year low of 3 percent in June, the growth of the money supply accelerated for the second straight month in August, the BOK said.
The M2 covers currency in circulation and all types of deposits with a maturity of less than two years at lenders and non-banking financial institutions, excluding those held by insurers and brokerage houses.
"The growth of the M2 picked up after the money supply had been on a falling trend for a long time," said an official at the BOK.
The on-year growth in the M2 had been slowing for the 11th straight month since July of last year when the money supply expanded 9.3 percent from the previous year, as banks were wary of extending loans despite ample liquidity driven by low interest rates.
The BOK said in a separate statement that the country's M2 is estimated to have grown at the low-4 percent range in September as an increase in bank lending overshadowed reduced surplus in the current account and foreign capital outflows.
Meanwhile, liquidity provided by financial institutions grew 5.5 percent on-year to 2,230.2 trillion won in August, accelerating from a 4.6 percent expansion in July, the BOK said.
But the country's liquidity aggregate, the broadest measure of the money supply, grew at a slower pace in August than July as the growth of corporate debt sale eased down, the BOK said.
The liquidity aggregate expanded 8.6 percent in August from a year earlier, slowing from 9 percent on-year gain in July.
The liquidity aggregate covers currency in circulation and all types of deposits at financial institutions and state and corporate bonds.
The data came one day before the BOK holds its monthly rate-review meeting. Despite a pick-up in the money supply growth, analysts forecast that the BOK is likely to freeze the key interest rate at 3.25 percent for the fourth consecutive month on increased external economic uncertainty.
The country's M2, a narrow measure of the money supply, reached 1,719.4 trillion won (US$1.46 trillion) in August, up 4 percent from a year earlier, according to the Bank of Korea (BOK).
The August data marked the fastest growth since 4.3 percent on-year expansion tallied in March.
After the M2 growth hit a seven-year low of 3 percent in June, the growth of the money supply accelerated for the second straight month in August, the BOK said.
The M2 covers currency in circulation and all types of deposits with a maturity of less than two years at lenders and non-banking financial institutions, excluding those held by insurers and brokerage houses.
"The growth of the M2 picked up after the money supply had been on a falling trend for a long time," said an official at the BOK.
The on-year growth in the M2 had been slowing for the 11th straight month since July of last year when the money supply expanded 9.3 percent from the previous year, as banks were wary of extending loans despite ample liquidity driven by low interest rates.
The BOK said in a separate statement that the country's M2 is estimated to have grown at the low-4 percent range in September as an increase in bank lending overshadowed reduced surplus in the current account and foreign capital outflows.
Meanwhile, liquidity provided by financial institutions grew 5.5 percent on-year to 2,230.2 trillion won in August, accelerating from a 4.6 percent expansion in July, the BOK said.
But the country's liquidity aggregate, the broadest measure of the money supply, grew at a slower pace in August than July as the growth of corporate debt sale eased down, the BOK said.
The liquidity aggregate expanded 8.6 percent in August from a year earlier, slowing from 9 percent on-year gain in July.
The liquidity aggregate covers currency in circulation and all types of deposits at financial institutions and state and corporate bonds.
The data came one day before the BOK holds its monthly rate-review meeting. Despite a pick-up in the money supply growth, analysts forecast that the BOK is likely to freeze the key interest rate at 3.25 percent for the fourth consecutive month on increased external economic uncertainty.
