Money supply in Japan hit a record high in fiscal 2015 amid signs of an improving business environment, Bank of Japan data showed Wednesday.

The average daily balance of the M3 gauge, which includes cash in circulation, deposit money and certificates of deposit, grew 2.9 percent from the previous year to ¥1,231 trillion, the biggest since 2003, when comparable data became available.

The expansion reflected a continued rise in bank lending amid aggressive monetary easing by the central bank as well as improving trade terms due largely to cheaper crude oil.

The wider measure of broadly defined liquidity, also covering investment trusts, government bonds and other components, increased 4.1 percent in the year ended March 31 to ¥1,628 trillion, the BOJ said.