Money supply continues to rise in Aug. on short-term deposits

Korea's money supply, as measured by the M2 index, rose by 0.9 percent in August, driven by increases in short-term deposits and money trusts. This growth is a result of more people and businesses putting their money into easily accessible financial instruments, such as demand deposits and cash. The steady rise in M2 since November indicates a growing economy, which can lead to higher interest rates and a stronger currency. This, in turn, can impact Korea's trade and economy, making it more attractive to foreign investors.

Why it matters

The increase in money supply is driven by short-term deposits and money trusts. This could lead to an increase in liquidity and economic activity.

Market impact

Transmission channels

Likely winners & losers

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