Money supply falls for first time in 23 months in March: Bank of Korea

Money supply falls for first time in 23 months in March: Bank of Korea

Korea's money supply fell for the first time in 23 months in March, due mainly to a decline in savings deposits and other liquid financial products, central bank data showed Thursday. The country's M2, a key gauge of the money supply, stood at 4,227.8 trillion won ($3.01 trillion) in March, down 0.1 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK). It marked the first monthly decline since April 2023. …

Korean Money Supply Shrinks Despite Interest Rate Cuts

Bundles of Korean banknotes (BusinessKorea DB) As the Bank of Korea is expected to lower the base rate at the end of this month, the money circulating in the market has decreased for the first time in 23 months. Typically, during periods of interest rate cuts, money in circulation increases, but the opposite phenomenon has occurred. Experts assess that abnormal signals are beginning to appear throughout the body of our economy, like a critical p…