The money supply in South Korea grew nearly 7 percent on-year in July due to increased deposits, both in local and foreign currencies, by households and companies, the central bank said Thursday.

The nation's "M2" totaled 2,348.3 trillion won ($2,147 billion) in July, up 6.9 percent from a year earlier, according to the Bank of Korea. It marks a 0.7 percent rise from June.


M2 is a measure of the money supply counting the currency in circulation, including bank debentures and deposits with a maturity of less than two years, along with stock investments. It's a key economic indicator closely monitored by the authorities.

The data came a day before the BOK's scheduled monthly rate-review session. Analysts said they expect the BOK to hold the key rate steady at a record low 1.25 percent for September.

Meanwhile, the country's liquidity aggregate, the widest measure of the money supply, grew 7.8 percent in July from a year earlier.

The liquidity aggregate, the broadest measure of the nation's money supply, covers currency in circulation, all types of deposits at financial institutions and state and corporate bonds. (Yonhap)