S. Korea Jan. money supply up 4.8 percent

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SEOUL, March 13 (UPI) -- South Korea's January money supply grew 4.8 percent year-on-year to a four-month high of $1.7 trillion, Seoul's central bank said Wednesday.

The Bank of Korea cited higher fiscal spending and the country's current account surplus for the M2 growth, Yonhap News reported.

The bank said the January M2, which includes currency in circulation, was higher than the 4.5 percent increase in December. February growth was expected to be even higher.

Yonhap reported the central bank's announcement comes a day before its policymakers have a rate-setting session. The report quoted analysts as saying the key rate is likely to remain unchanged at 2.75 percent for a fifth consecutive month.