ID :
23276
Wed, 10/08/2008 - 20:16
Auther :
Shortlink :
http://m.oananews.org//node/23276
The shortlink copeid
S. Korea`s money supply growth slightly picks up in August
SEOUL, Oct. 8 (Yonhap) -- The growth of South Korea's money supply picked up
slightly in August, while a narrower measure of liquidity marked slower growth on
eased bank lending, the central bank said Wednesday.
The country's liquidity aggregate reached 2,233.8 trillion won (US$1.66 trillion)
as of the end of August, up 13.3 percent from a year earlier, according to the
Bank of Korea (BOK). August's money supply growth accelerated slightly from a
13.2 percent on-year gain in July, marking the 24th straight month of
double-digit growth.
The liquidity aggregate, the broadest measure of money supply, covers currency in
circulation, all types of deposits at financial institutions, and state and
corporate bonds.
Meanwhile, the BOK said a narrower measure of the money supply called the M2 grew
at a slower pace in August from a month earlier.
"The growth of the M2 slowed down as the country posted a current account deficit
and liquidity provided by financial institutions to the private sector eased,"
the BOK said.
The M2 covers currency in circulation and all types of deposits with maturity
less than two years at lenders and non-banking financial institutions, except
from insurers and brokerage houses.
In a separate report, the BOK said the gain in the M2 is estimated to have slowed
in September to the mid-14 percent range as bank's lending eased.
The data came a day before the BOK holds its monthly rate-setting meeting.
Economists say the BOK is likely to freeze its key interest rate for October at
5.25 percent for the second straight month amid conflicting risks of persisting
inflation and a slowing economy.
The BOK raised the rate by a quarter percentage point in August to control
spiraling inflation, the first increase in a year.
South Korea's consumer prices climbed 5.1 percent on-year in September, slowing
from a 5.6 percent gain in August, as oil and commodity prices showed signs of
stabilization. The country's consumer prices breached the BOK's target range of
2.5-3.5 percent for the tenth straight month.
slightly in August, while a narrower measure of liquidity marked slower growth on
eased bank lending, the central bank said Wednesday.
The country's liquidity aggregate reached 2,233.8 trillion won (US$1.66 trillion)
as of the end of August, up 13.3 percent from a year earlier, according to the
Bank of Korea (BOK). August's money supply growth accelerated slightly from a
13.2 percent on-year gain in July, marking the 24th straight month of
double-digit growth.
The liquidity aggregate, the broadest measure of money supply, covers currency in
circulation, all types of deposits at financial institutions, and state and
corporate bonds.
Meanwhile, the BOK said a narrower measure of the money supply called the M2 grew
at a slower pace in August from a month earlier.
"The growth of the M2 slowed down as the country posted a current account deficit
and liquidity provided by financial institutions to the private sector eased,"
the BOK said.
The M2 covers currency in circulation and all types of deposits with maturity
less than two years at lenders and non-banking financial institutions, except
from insurers and brokerage houses.
In a separate report, the BOK said the gain in the M2 is estimated to have slowed
in September to the mid-14 percent range as bank's lending eased.
The data came a day before the BOK holds its monthly rate-setting meeting.
Economists say the BOK is likely to freeze its key interest rate for October at
5.25 percent for the second straight month amid conflicting risks of persisting
inflation and a slowing economy.
The BOK raised the rate by a quarter percentage point in August to control
spiraling inflation, the first increase in a year.
South Korea's consumer prices climbed 5.1 percent on-year in September, slowing
from a 5.6 percent gain in August, as oil and commodity prices showed signs of
stabilization. The country's consumer prices breached the BOK's target range of
2.5-3.5 percent for the tenth straight month.
