Global: Japan's monetary base increases 17 per cent in June

TOKYO. Japan's monetary base rose 17.0 per cent in June from a year earlier, rising for the 34th consecutive month from a 16.2 per cent annual increase logged in the previous month, the Bank of Japan (BOJ) said in a report yesterday.

The average daily balance of the monetary base stood at 113. 4780 trillion yen ($1,404 billion), compared to an average balance of 114.4208 trillion yen logged in the previous month, the central bank said.

The BOJ has ensured that since the March 11 twin disasters that devastated regions in the east and northeast of Japan there is enough liquidity in money markets so that regional banks and other financial institutions can continue lending not just to the public, but also to each other.

The endeavor has gone some way towards calming money markets in the wake of the March cataclysms.
The central bank said Monday that banknotes in circulation in the recording period increased 2.7 percent on year, but the amount of coins in circulation remained flat, following a 0.1 percent increase booked the previous month.

The current account balances rose 89.2 per cent on year in June, from 82.5 in May, but were well down on the 123.4 per cent on year leap booked a month after the March disasters in April, the central bank's data showed.

The pace of increase in reserve balances slowed to 78.1 per cent in June from 82.2 per cent in May, the BOJ data showed.

On a seasonally adjusted basis, the monetary base increased 14. 1 per cent to an annualized 114.352 trillion yen compared to May's reading of 113.180 trillion yen the BOJ said. (Xinhua)