/

Japan’s M3 money supply rose 2.4% in July

JIJI

Japan’s M3 money supply increased 2.4 percent in July from a year before, after rising 2.5 percent rise the month before, the Bank of Japan said in a preliminary report Monday.

The pace of growth slowed for the sixth straight month due to an increase in income tax payments and slower growth in lending by financial institutions.

The balance of M3 averaged ¥1.19 quadrillion in July, BOJ said. The M3 gauge covers cash in circulation and demand and time deposits plus certificates of deposit.

Of the M3 components, deposits rose 4.1 percent against the 4.5 percent increase in the previous month, and cash in circulation rose 3.4 percent, unchanged from the previous month.

The balance of M1, a narrower measure made up of cash and demand deposits, rose 4 percent to ¥586 trillion.

The broadest liquidity measure, which includes investment trust funds and government securities in addition to the items in M3, grew 3.1 percent to ¥1.56 quadrillion.