Japan's monetary base grew 1.9 percent in February from a year earlier for the 61st straight monthly increase, the Bank of Japan said Thursday.
The average daily balance of the monetary base -- cash in circulation plus current-account deposits held at the central bank by financial institutions and Japan Post -- rose to 111.443 trillion yen in the reporting month, the BOJ said.
The monetary base has continued to expand as the BOJ has kept providing the financial market with liquidity under its quantitative monetary easing policy since March 2001 to pull the economy out of deflation.
But the pace of expansion has slowed, reflecting diminishing demand by financial institutions for extra funds in line with restored stability in the financial system.
The outstanding balance of BOJ notes in circulation rose 2.3 percent to 73.883 trillion yen.