SEOUL, March 15 (Xinhua) -- South Korea's money supply grew for the eighth straight month in January due to robust demand for money trust and money market fund (MMF), central bank data showed Friday.
The seasonally-adjusted M2, or broad money, rose 0.2 percent in January compared to the previous month, keeping an upward trend since June last year, according to the Bank of Korea (BOK).
The continued growth was attributed to solid demand for short-term financial instruments such as money trust and MMF.
The BOK had left its key rate unchanged at 3.50 percent since January last year, after increasing it by 3.0 percentage points for the past one and a half years.
The M1, or narrow money, added 0.3 percent in January on a monthly basis, keeping an upward trend for the fourth consecutive month.
The M1 refers to currency in circulation, demand deposits and transferable savings deposits equivalent to cash. The M2 adds money market funds, time deposits and financial products that mature in less than two years.
The liquidity of financial institutions, called Lf, expanded 0.5 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, climbed 0.5 percent.
The Lf includes financial products with maturity of more than two years and liquidity at insurers and brokerages along with M2. The liquidity aggregate adds state and corporate bonds to the Lf. ■