LOC10:04
07:04 GMT
TOKYO, Oct 2 (KUNA) -- Japan's monetary base stood at JPY 252.58 trillion (USD 2.32 trillion) at the end of September, marking an all-time high since comparable data available since July 1996, the central bank said Thursday.
The monetary base comprises money supplied to the markets by the Bank of Japan (BOJ), including cash in circulation and commercial banks' deposits held at the BOJ's current accounts. An expansion in the monetary base has inflationary effect.
In April last year, the BOJ introduced drastic measures to double the monetary base in two years by pumping large amounts of money into financial markets to pull Japan out of deflation that has lasted for nearly 15 years.
It aims to increase the monetary base at an annual pace of about JPY 60-70 trillion (USD 550-640 billion), hoping the measure will help firms expand business operations. The monetary base is projected to rise to JPY 270 trillion (USD 2.48 trillion) at the end of this year if the central bank conducts its monetary operations as planned.
BOJ Governor Haruhiko Kuroda said last month that the Japanese economy is on course to achieving BOJ's 2-percent inflation goal, but still halfway to attaining the target.
The central bank will continue its massive monetary easing program to achieve an inflation target of 2 percent in a stable manner, Kuroda said, adding that the BOJ will adjust monetary policy without any hesitation if the inflation goal becomes difficult to achieve. (end)
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