The monetary base released by the Bank of Japan for September fell 15.2% year on year, with the balance at the end of September in the ¥535 trillion range. The sharp decline in current account deposits at the BOJ contributed to the result, while the rate of decline narrowed slightly from August.
The average outstanding balance of the monetary base released by the Bank of Japan for September was ¥532.8464 trillion, down 15.2% year on year. The balance at the end of September was ¥535.4214 trillion, below the previous month's ¥543.7652 trillion.
By component, Bank of Japan notes outstanding, corresponding to banknotes, stood at ¥114.6005 trillion, down 2.0% year on year, while currency in circulation, corresponding to coins, was ¥4.5781 trillion, down 1.2%. Both registered only slight declines. Meanwhile, current account deposits at the BOJ held by private financial institutions fell 18.3% year on year to ¥413.6678 trillion.
The overall decline in the monetary base was characterized by the sharp decrease in current account deposits at the BOJ. According to Reuters, the end of new lending under the operation supporting lending growth in the previous year and the large amount of repayments under the operation led to the decline in BOJ current account deposits, while repayments in September this year are estimated to have been smaller than in the same month last year.
The balance at month-end was ¥535.4214 trillion at the end of September, below the previous month's ¥543.7652 trillion. The seasonally adjusted annualized month-on-month rate was negative 10.2% in September, slowing from negative 28.8% in August.