Japan’s money supply, measured by M2+CD, rose 2% year on year in September, unchanged from the prior month. The steady reading points to little shift in the pace of monetary aggregates as the banking system’s deposit and cash dynamics remained broadly stable.
Definition and Scope of M2+CD
M2+CD captures currency in circulation and the private sector’s deposits, along with certificates of deposit, and is watched for clues on liquidity conditions.
Implications of the Growth Rate
With the annual growth rate holding at 2%, the latest data suggest momentum in broad money stayed consistent into early autumn.
