South Korea’s money supply continued to rise in March amid an extended tightening policy mode, central bank data showed Thursday.

The country’s M2, a key gauge of the money supply, stood at 3,994 trillion won (US$2.945 trillion) in March, up 1.6 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK).

The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.

The central bank has been implementing its restrictive mode, as it delivered seven consecutive hikes in borrowing costs from April 2022 to January 2023 to tame soaring inflation in Asia’s fourth-largest economy.

Last month, the BOK held its key interest rate steady at 3.5 percent for the 10th straight time amid still high inflation.

Source: Yonhap News Agency