SEOUL — South Korea's money supply remained steady in May, reflecting ongoing restrictive monetary policies by the Bank of Korea (BOK). According to preliminary data from the central bank, the country's M2 money supply—which includes cash, demand deposits, and other liquid assets—was reported at 4,014 trillion won (approximately US$2.909 trillion), unchanged from April.
According to Yonhap News Agency, the stability in the money supply is a result of the central bank's continued efforts to manage inflation through a series of interest rate hikes that began in April 2022 and lasted until January 2023. Despite these measures, the BOK has maintained the key interest rate at 3.5 percent since the beginning of the policy change, marking the 12th consecutive month without a change amid signs of moderating inflation in the nation's economy.