SEOUL, Nov. 14 (Xinhua) -- South Korea's money supply grew for the 16th consecutive month due to robust demand for deposits, central bank data showed Thursday.

The seasonally-adjusted M2, or broad money, added 0.2 percent to 4,070.7 trillion won (2.89 trillion U.S. dollars) in September compared to the previous month, continuing to rise since June 2023, according to the Bank of Korea (BOK).

The continued growth was attributed to solid demand for time deposits and transferable savings deposits.

The M1, or narrow money, climbed 0.6 percent in September on a monthly basis, keeping an upward trend for the second straight month.

The BOK cut its benchmark interest rate by 25 basis points to 3.25 percent in October amid higher expectations for less tightened monetary policy.

The M1 refers to currency in circulation, demand deposits and transferable savings deposits equivalent to cash. The M2 adds money market funds, time deposits and financial products that mature in less than two years.

The liquidity of financial institutions, called Lf, swelled 0.4 percent in the cited month, while the liquidity aggregate, the broadest measure of money supply, advanced 0.7 percent.

The Lf includes financial products with a maturity of over two years and liquidity at insurers and brokerages along with M2. The liquidity aggregate adds state and corporate bonds to the Lf. Enditem

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