Xinhua, Seoul :
Money supply growth in South Korea slowed in May on expectations for a rate hike after higher interest rates in the United States, central bank data showed Wednesday.
The M2, dubbed broad money, increased 6.1 percent in May from a year earlier, after rising 6.6 percent in the prior month, according to Bank of Korea (BOK).
After peaking at 9.4 percent in September 2015, the M2 growth rate showed a downward trend, hovering around 6 percent this year.
The BOK was expected to lift its benchmark interest rate as the U.S. Federal Reserve hiked its policy rate to a range of 1.00-1.25 percent in June.
The South Korean central bank lowered its policy rate to an all-time low of 1.25 percent in June last year from 3.25 percent in July 2012.
The M1, also called narrow money, jumped 9.5 percent in the cited period.
The M1 refers to currency in circulation, demand deposits and transferable savings deposits equivalent to cash. The M2 adds money market fund, money trust, time deposit and financial products that mature in less than two years to M1.
Money supply growth in South Korea slowed in May on expectations for a rate hike after higher interest rates in the United States, central bank data showed Wednesday.
The M2, dubbed broad money, increased 6.1 percent in May from a year earlier, after rising 6.6 percent in the prior month, according to Bank of Korea (BOK).
After peaking at 9.4 percent in September 2015, the M2 growth rate showed a downward trend, hovering around 6 percent this year.
The BOK was expected to lift its benchmark interest rate as the U.S. Federal Reserve hiked its policy rate to a range of 1.00-1.25 percent in June.
The South Korean central bank lowered its policy rate to an all-time low of 1.25 percent in June last year from 3.25 percent in July 2012.
The M1, also called narrow money, jumped 9.5 percent in the cited period.
The M1 refers to currency in circulation, demand deposits and transferable savings deposits equivalent to cash. The M2 adds money market fund, money trust, time deposit and financial products that mature in less than two years to M1.
