— Japan Jan M3 Money Stock +1.8% Y/Y Vs Dec +1.8%
TOKYO (MNI) – Japan’s money stock growth, measured by the key M2
aggregate, rose 2.3% from a year earlier in January after +2.3% in
December, remaining at the slowest rate of growth since +2.2% in March
2009, the Bank of Japan said Tuesday.
Money stock growth accelerated in early 2010, reaching a recent
peak of 3.1% in May, but remained below the record rise of +3.4% marked
in October 2009.
Japan’s M3 money stock aggregate rose 1.8% y/y, also unchanged from
a 1.8% rise in December and posting the slowest rate of growth since
+1.7% in June 2009.
Like M2, M3 growth peaked in May 2010 — at 2.3% — and has
decelerated since.
The January M2 growth came in slightly stronger than the consensus
call of a 2.2% rise. The M3 figure was also stronger than the average
economist forecast for a 1.7% rise.
In June 2008, the BOJ changed its measures for money supply data in
lined with the privatization of Japan Post Bank Co. in October 2007.
The central bank has created the M3 category, which comprises M2
plus certificates of deposits and deposits at the postal bank, credit
unions and agricultural cooperatives among other lenders.
The BOJ now calls its main money supply measure simply M2,
replacing the previous M2 plus CDs designation.
The BOJ continues to focus on both M2 and M3 data to gauge economic
activity at the moment as the bank has no long-term historical data on
the M3 aggregate yet.
Quasi-money — cash equivalent and other assets that are easily
convertible into cash — fell 0.3% in January from a year earlier,
accelerating from the 0.1% fall in December.
The narrow measure of money supply, M1, which consists of currency
in circulation and deposit money, rose 3.1% on year in January, after
rising 3.0% in the previous month.
Certificates of deposit were up 21.2% in January, after rising a
revised 20.6% (preliminary +20.4%) in December.
tokyo@marketnews.com
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