S Korea’s money supply keeps rising in Dec on low policy rate

15 February, 2019 12:00 AM printer

SEOUL: Money supply in South Korea kept rising in December on the still low policy rate, central bank data showed on Thursday.

The M2, called broad money, grew 6.8 percent in December from a year earlier, after rising by the identical rate in November, according to the Bank of Korea (BOK), reports Xinhua.

The expansion came as the central bank maintained its low policy rate for a prolonged period of time. The BOK hiked its benchmark interest rate by a quarter percentage point in November last year to 1.75 percent. It was the first rate hike in 12 months, but the rate was far lower than the U.S. target rate ranging from 2.25 percent to 2.50 percent.