SEOUL, Dec. 12 (Xinhua) -- Money supply in South Korea kept growing in October amid the protracted trend of low-interest rate, central bank data showed Wednesday.

The M2, called broad money, rose 6.8 percent in October from a year earlier, after adding 6.4 percent in the previous month, according to the Bank of Korea (BOK).

It came as corporate and household debts continue to increase amid the prolonged low rate trend.

The BOK left its benchmark interest rate unchanged a 1.50 percent since the bank raised it to the level in November last year from an all-time low of 1.25 percent. The bank lifted it to 1.75 percent in late November.

The M1, dubbed narrow money, grew 1.7 percent in October from a year earlier.

The M1 refers to the 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 to M1.

Liquidity of financial institutions, called Lf, expanded 7.4 percent in the cited period. The year-over-year increase of liquidity aggregate, the broadest measure of money supply, was 6.9 percent.

The Lf includes financial products with a maturity of more than 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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