Business / Financial Markets

Japan's monetary base touches another record high

Kyodo

The monetary base grew 42.7 percent in July from a year earlier to ¥243.11 trillion, reaching a fresh record high on the Bank of Japan’s aggressive monetary easing to boost the economy, data released by the central bank showed Monday.

The average daily balance of the money that the BOJ provides to the economy, such as cash in circulation and the balance of current account deposits held by financial institutions at the bank increased for the 27th straight month.

The balance of current account deposits, or the sum of money those institutions can use freely, rose 84.8 percent to ¥152.19 trillion as the BOJ purchases from the lenders massive amounts of Japanese government bonds and other financial assets as part of the monetary easing, introduced in April 2013.

The average daily balance of the monetary base reached a record high for the 17th consecutive month. The BOJ aims to raise the amount to ¥270 trillion by the end of the year.