Japan’s key gauge of money supply grew at a pace of 3.9 percent in October from a year earlier, up 0.1 percentage point from its 3.8 percent rise in September, the Bank of Japan said in a preliminary report Wednesday.

The daily average of M2 plus CD — cash in circulation, demand deposits and time deposits plus certificates of deposit — stood at a preliminary 592 trillion yen, the central bank said.

If M2 plus CDs at Japanese branches of foreign banks and those at Zenshinren Bank, an umbrella body of “shinkin” (credit) banks nationwide, are included, the amount came to 594.9 trillion yen, the BOJ said.

Financial analysts said the increase in money supply reflects corporations’ moves to reserve funds, instead of investing, in case of immediate need of cash.

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