SEOUL — South Korea’s money supply increased for the ninth consecutive month in February, even as the central bank continues its restrictive monetary policy.
According to Yonhap News Agency, the country’s M2 money supply, which includes cash, demand deposits, and other liquid financial instruments, reached 3,929.9 trillion won (approximately US$2.82 trillion) in February, marking a 0.1 percent increase from the previous month.
The BOK has raised borrowing costs seven times from April 2022 to January 2023 in an effort to control inflation in Asia’s fourth-largest economy. Despite these measures, the central bank maintained its key interest rate at 3.5 percent for the tenth consecutive session earlier this month, reflecting ongoing concerns about high inflation and household debt levels.