TOKYO (Thomson Financial) - Japan's monetary base fell 4.1 percent from a year before to 87.634 trln yen in June, dropping for the
16th consecutive month, preliminary data from the Bank of Japan showed.
The decline followed a 5.7 pct fall in May, when the monetary base posted a single-digit dip for the
first time in 13 months.
In March 2006, Japan's monetary base dropped for the first time in more than five years after the BoJ
abandoned its easy credit policy, which was designed to counter deflation, and has been shrinking since then as the central bank steadily drains surplus funds from short-term money markets.
The total amount that Japanese commercial banks keep in current accounts at the central bank
declined 37.2 pct from a year before to 8.48 trln yen in June, also falling for the 16th consecutive month.
(1 usd = 122.36 yen)
yasuhiko.seki@thomson.com
yas/ms
