Written by 1:25 PM Economics

Anticipation of an interest rate cut… Domestic liquidity has been increasing for 14 consecutive months

Officials are supplying Chuseok currency at the Bank of Korea Currency Receipt Center in Jung-gu, Seoul on the 5th. Photo=Photo Joint Coverage

Officials are supplying Chuseok currency at the Bank of Korea Currency Receipt Center in Jung-gu, Seoul on the 5th. Photo=Photo Joint Coverage,
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, “With expectations of a decrease in the U.S. benchmark interest rate, the market liquidity continues to rise.”,
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, “According to the ‘July Money and Liquidity Trends’ data released by the Bank of Korea on the 13th, the broad money supply (M2) recorded a 0.4% increase to 4053.9 trillion won in July compared to the previous month. M2 has been on the rise for 14 consecutive months since June last year (0.3%).”,
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, “M2 is a broad measure of money that includes cash, demand deposits, time and savings deposits, as well as money market funds (MMF), term deposits of less than 2 years, securities with yields, and repurchase agreements (RP).”,
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, “By financial product, securities with yields increased by 10.8 trillion won, other monetary products by 5.8 trillion won, and time deposits by 5.3 trillion won, while demand deposits decreased by 5.9 trillion won, and financial bills of less than 2 years by 3 trillion won.”,
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, “Securities with yields increased significantly centered on short-term bond funds due to strengthened expectations of a decrease in the U.S. benchmark interest rate. Other monetary products turned to an increase as funds flowed into foreign currency deposits and comprehensive asset management accounts (CMA). Time deposits increased due to the recognition of high interest rates and efforts by banks to attract funds.”,
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, “Demand deposits decreased primarily among local governments, and financial bills converted to a decrease with monetary stabilization securities and bank bills being redeemed.”,
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, “By economic entity, households and nonprofit organizations increased by 18.9 trillion won, other financial institutions by 4.3 trillion won, and businesses by 3.6 trillion won, while other sectors decreased by 2.3 trillion won.”,
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, “The average balance of M1 in July was 1216.6 trillion won, with demand deposits decreasing and dropping by 4 trillion won compared to the previous month. Bank liquidity (Lf) increased by 9.8 trillion won compared to the previous month.”,
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