Japan's M2 money supply up 2.9% on year in June
Japan's benchmark money supply measure rose 2.9 percent from a year earlier as gauged by the M2 aggregate, from 2.7 percent logged in May, the Bank of Japan (BOJ) said in a report on Monday.
According to the central bank's figures, the aggregate rose at the quickest pace in June since the same reading of 2.9 booked in June 2010, but remained lower than an all time high of 3.4 logged in October 2009.
June's figure, however, beat economists' expectations for a 2.8 percent rise.
Japan's M3 money supply, meanwhile, rose 2.2 percent in June from a year earlier, in line with a revised 2.2 percent booked a month earlier, as well as median forecasts for this month, the BOJ data showed.
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 -- dropped 0.2 percent in June from a year earlier, after a revised reading of 0.1 percent booked in May, the central bank said.
Money supply or money stock, is the total amount of money available in an economy at a particular point in time and is usually defined as currency in circulation and demand deposits ( depositors' easily-accessed assets on the books of financial institutions).
Leading economists are quick to note that there is a direct relation between long-term price inflation and money-supply growth, at least for rapid increases in the amount of money in the economy.
Source:Xinhua
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According to the central bank's figures, the aggregate rose at the quickest pace in June since the same reading of 2.9 booked in June 2010, but remained lower than an all time high of 3.4 logged in October 2009.
June's figure, however, beat economists' expectations for a 2.8 percent rise.
Japan's M3 money supply, meanwhile, rose 2.2 percent in June from a year earlier, in line with a revised 2.2 percent booked a month earlier, as well as median forecasts for this month, the BOJ data showed.
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 -- dropped 0.2 percent in June from a year earlier, after a revised reading of 0.1 percent booked in May, the central bank said.
Money supply or money stock, is the total amount of money available in an economy at a particular point in time and is usually defined as currency in circulation and demand deposits ( depositors' easily-accessed assets on the books of financial institutions).
Leading economists are quick to note that there is a direct relation between long-term price inflation and money-supply growth, at least for rapid increases in the amount of money in the economy.
Source:Xinhua
Weekly review !
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