South Korea's money supply expanded in November as savings increased due in part to rising interest rates, central bank data showed Wednesday.

The country's M2, a key gauge of the money supply, stood at 3,589.1 trillion won ($3.01 trillion) on average in November, up 1.1 percent, or 39.4 trillion won, from a month earlier, according to the preliminary data from the Bank of Korea (BOK).

The growth rate was the same as what was reported in October.

Compared with a year earlier, the money supply surged 12.9 percent, the fastest since the 13.1 percent expansion recorded in December 2008, the data showed.

The November growth in money supply stemmed in part from increased deposits at financial institutions bolstered by rising interest rates.

Time deposits, among others, jumped 13.9 trillion won on-month in November, the data showed.

Rates on savings have been on the rise in tandem with the central bank's policy rate hikes in recent months as it seeks to tighten its loose monetary policy aimed at propping up the pandemic-hit economy.

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