SEOUL, May 16 (Xinhua) -- Money supply in South Korea rebounded for the first time in three months amid the record-low interest rate, the central bank data showed Tuesday.
The M2, dubbed broad money, increased 6.2 percent in March compared with the same month of last year, Bank of Korea (BOK) data showed.
The money supply fell 6.9 percent in January and 5.9 percent in February each as market rates advanced amid the expected interest rate hike by the U.S. Federal Reserve.
It rebounded in March as the BOK refrained from altering its policy rate despite the U.S. rate hikes.
The BOK cut its benchmark seven-day repurchase rate from 3.25 percent in July 2012 to an all-time low of 1.25 percent in June last year.
The M1, also called narrow money, jumped 10.6 percent in March from a year earlier.
The M1 covers currency in circulation, demand deposit and transferable savings deposit 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.
Liquidity of financial institutions, called Lf, advanced 7.3 percent in March from a year ago. The on-year growth of liquidity aggregate, the broadest measure of money supply, was 6.9 percent.
The Lf includes financial products with a maturity of more than two years and liquidity at insurers and brokerages along with M2. The liquidity aggregate adds state and corporate bonds to the Lf.
