Money Supply

In June 2017, M2, grew by 3.9% YoY, a marginal increase from 3.8% YoY growth in May.

Published monthly by Bank of Japan (BoJ) updated to the month of June 2017(Published on July 11th, 2017).

Brief Overview of Money Supply

The money supply statistic represents the total stock of currency (cash, coins) and the other liquid instruments (bank deposits, government securities) in an economy at a point in time. There are four measures of money supply used by the Bank of Japan which includes M1, M2, M3, and Broadly defined liquidity (L).

For exact definitions and coverage of these measures of money supply please visit the official government page.  Bank of Japan (BoJ) publishes the money supply statistics on a monthly basis.

Since 1990s, Japan has faced a deflationary problem which persists till today. The Bank of Japan has been criticized for underestimating the gravity of the problem. BoJ has been trying to reflate the economy by lowering interest rates, adopting the zero interest rate policy in 1999 and then quantitative easing (QE) policy in 2001. In 2010, BoJ expanded its QE to include purchase of ETF and corporate bonds. In 2013, governor Kuroda massively expanded the QE program and again in late 2014. In early 2016, he went further in adopting a negative interest rate policy (NIRP). However, all these monetary expansion has yet failed to bring about a sustained inflation in Japan.

Published monthly by the Bank of Japan (BoJ)  updated to the month of May 2017.

Japan-US monetary base ratio (Soros chart)

The ratio of Japan-US monetary base, also known as Soros chart, is used to assess the impact of the Quantitative extension/expansion on the USD/JPY exchange rate. The theoretical foundation for the relationship between monetary base and exchange rate is weak, but the chart maintains a persistent popularity among financial market practitioners. 

The Next Relelease Date: August 2nd, 2017 (Monetary Base)
                                       

                                              

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Exchange Rates

In June 2017, the average exchange rate of USD/JPY was 110.89, with Yen appreciating from the average of 112.24 in May 2017.The Real Effective Exchange Rate of Yen in May was 76.54(2010=100), apprec

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Japan Bank lending

The bank lending growth remained elevated in June. Bank lending by all bank types rose by 3.3% year on year (YoY), virtually the highest growth since the statistics become available in 2001. By bank

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Interest Rates

In June 2017, Japanese 10-year JGB interest rates was 0.053% on average.

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Bank of Japan balance sheet

As of July 20 2017, the Bank of Japan held a total of 502.6 trillion yen in assets. Its JGB holding was 396.2 trillion yen, up by 67.8 trillion yen from a year ago.

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