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Japan’s most closely watched money supply gauge rose 1.4 percent in May from a year earlier after a 1.7 percent increase in April, the Bank of Japan said Thursday.

The average daily balance of M2 plus certificates of deposit came to 713.8 trillion yen. M2 consists of cash in circulation, demand deposits and quasi-money.

Quasi-money, mostly in time deposits, fell 2.2 percent to 300.1 trillion yen in May, down for the 78th straight month. Quasi-money refers to savings at banks that cannot immediately be cashed, including time deposits, foreign currency deposits and nonresidents’ yen deposits.

The balance of demand deposits — ordinary deposits and checking accounts — increased 5 percent to 322.7 trillion yen in the reporting month, following a 5.8 percent gain in April.

The balance of cash in circulation rose 2.1 percent to 71.3 trillion yen after a revised 1.8 percent increase a month earlier.

The balance of M1 — cash in circulation plus demand deposits — grew 4.4 percent from a year before to 394 trillion yen after a 5.1 percent rise in April.

The balance of certificates of deposit fell 1.9 percent from a year earlier to 19.8 trillion yen in May.

Broadly defined liquidity, the widest measure of the money supply, gained 2.5 percent to 1.433 quadrillion yen.

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