The amount of money circulated in the market grew sharply in June due to the lowered key interest rate.
 
According to the Bank of Korea(BOK)’s data on money supply and liquidity released on Wednesday, the nation’s M2, or a measure of money supply, stood at two-point-33 quadrillion won in June.
 
That’s up nearly 23 trillion won from May and up seven-point-two percent from the same period last year.
  
The M2 witnessed a year-on-year growth of eight-point-three percent in February, seven-point-eight percent in March, seven percent in April and six-point-seven percent in May.
 
Shin Seong-wook, head of the BOK’s economic statistics department, said the M2 growth rebounded after private credit grew in June mainly among households.
 
The amount of loans surged after the central bank slashed the nation’s key interest rate from one-and-a-half percent to one-and-a-quarter percent in June.
 
Meanwhile, the central bank estimated that growth of the nation’s M2 for July will stand in the seven-percent range.
 
M2 includes cash, demand deposits, money market deposit accounts, money market funds and is an indicator measuring the volume of money available to be cashed at any time.