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S. Korea's money supply growth slightly picks up in June
SEOUL, Aug. 7 (Yonhap) -- The on-year growth of South Korea's money supply slightly picked up in June from the previous month on the government's fiscal spending and the current account surplus, the central bank said Wednesday.

   South Korea's M2, a narrow measure of the money supply, rose 4.9 percent to 1,884.2 trillion won (US$1.7 trillion) in June from a year earlier, slightly quickening from a 4.8 percent on-year gain in May, according to the Bank of Korea (BOK).

   On a seasonally adjusted basis, the country's M2 grew 0.6 percent in June from the previous month, accelerating from a 0.1 percent on-month gain in May.

   The M2 covers currency in circulation and all types of deposits with a maturity of less than two years at lenders and non-banking financial institutions, excluding those held by insurers and brokerage houses.

   The BOK said in a separate statement that the growth of South Korea's M2 is estimated to have remained around 5 percent in July on the surplus run of the current account and growing bank lending.

   South Korea's liquidity aggregate, the broadest measure of the money supply, grew 6.8 percent in June from a year earlier, slowing from a 7.3 percent on-year gain in the previous month, it added.

   The liquidity aggregate covers currency in circulation and all types of deposits at financial institutions, and state and corporate bonds.

   The data came one day before the BOK is scheduled to hold their monthly rate-setting session. Analysts said that the BOK is likely to freeze the key rate at 2.5 percent for the third straight month in August.

   sooyeon@yna.co.kr
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