Key facts
- South Korea's M2 money supply increased by 0.6% in April.
- The M2 money supply reached 4,153.9 trillion won in April.
- Higher deposits were the main driver of the M2 money supply increase.
- The Bank of Korea is considering a move toward higher interest rates.
- The Bank of Korea's next monetary policy meeting is in May.
South Korea's M2 money supply experienced a growth of 0.6% in April, bringing the total to 4,153.9 trillion won. The primary driver behind this increase was a rise in deposits held by financial institutions. This economic indicator is released as the Bank of Korea (BOK) prepares for its May monetary policy meeting, where a potential adjustment towards higher interest rates is being considered. The central bank's stance suggests a possible move to curb inflationary pressures or manage economic growth. The M2 money supply is a broad measure of money, including cash, checking deposits, savings deposits, money market securities, and other near-money assets. An increase in M2 can indicate greater economic activity or potential inflationary trends. The BOK's consideration of higher interest rates would mark a significant shift in its monetary policy, potentially impacting borrowing costs for consumers and businesses across the nation.