The Bank of Japan's preliminary August money stock data showed that the average balance of M3 rose 1.2% year on year to ¥1,640 trillion, while broad liquidity reached a record high. Deposit money edged down, while quasi-money maintained strong growth.
According to the Bank of Japan's preliminary August money stock data, the average balance of M3 rose 1.2% year on year to ¥1,640 trillion. Both the growth rate and balance were slightly below the previous month but remained at high levels. Currency in circulation declined from a year earlier, while deposit money and quasi-money were relatively resilient.
M2 rose 2.0% year on year to ¥1,296.4 trillion, with both the growth rate and balance slightly below the previous month. Broad liquidity rose 4.4% to ¥2,342.7 trillion, with investment trusts and government bonds continuing to post strong growth of 13.9% and 18.5%, respectively. Foreign-currency-denominated bonds rose 7.1% to approximately ¥33 trillion.
Given the preliminary nature of the data, the figures may be revised from next month onward. Increased household investment has been cited as a factor supporting broad liquidity.
The data are based on materials released by the Bank of Japan and are being watched as an indicator of overall trends in the money stock.