Japan's August monetary base hits record high

Japan's monetary base stood at JPY 243.49 trillion (USD 2.32 trillion) at the end of August, marking an all-time high since comparable data available since July 1996, the central bank said Tuesday.
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 570-670 billion), hoping the measure will help firms expand business operations. The monetary base is projected to rise to JPY 270 trillion (USD 2.58 trillion) at the end of this year if the central bank conducts its monetary operations as planned.
The BOJ board decided last month to maintain its massive monetary easing program and continue to conduct money market operations. "The BOJ will continue with the quantitative and qualitative monetary easing, aiming to achieve the price stability target of two percent, as long as it is necessary for maintaining that target in a stable manner," it said in a statement on August 8.
The BOJ also said its monetary easing has been exerting its intended effects, showing its confidence that the country remains on track toward the price stability target.