Japan’s monetary base declines for first time in 18 years
BoJ’s balance sheet also shrank by 9.4% last year amid policy normalisation drive
Japan’s monetary base declined for the first time in nearly two decades in 2025, following the central bank’s moves to normalise policy.
Data released today (January 6) by the Bank of Japan showed that the bank’s average monetary base was ¥594.19 trillion ($3.79 trillion) in December, a 9.8% decline compared with the same month in 2024. The last time Japan’s monetary base had declined was in 2007, and last year’s figure represented the lowest level of cash in circulation in the country since 2020
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