Monetary base off a second month


Japan’s monetary base fell 0.3 percent in April from a year earlier to ¥121.50 trillion, marking a decline for the second straight month, Bank of Japan data showed Wednesday.

The BOJ’s abundant fund-supply operations following the huge earthquake and tsunami on March 11, 2011, are creating downward pressure on the year-on-year change, but the average daily balance of the monetary base was the second-highest, a BOJ official said.

The balance hit a record high ¥121.89 trillion in April last year.

The balance of current account deposits held by commercial financial institutions at the BOJ, or the sum of funds that the institutions can use freely, dropped 2.9 percent in April this year to ¥36.32 trillion. The balance of bank notes in circulation rose 0.9 percent to ¥80.67 trillion, while that of coins was down 0.1 percent to ¥4.51 trillion.