Japan Monetary Base Declines for 15th Straight Month

2026-11-03 23:56 By Joshua Ferrer 1 min. read

Japan’s monetary base contracted by 13.6% year-on-year in October 2026, marking the 15th consecutive month of decline, although the pace eased from a 15.2% drop in September.

The latest contraction was driven by a 16.4% fall in current account balances at the Bank of Japan, following an 18.3% decline in September, while banknotes in circulation fell 2.3% (vs. 2.0% in September) and coins in circulation eased 1.1% (vs. 1.2%).

Reserve balances also declined by 15.2%, compared with a 17.3% contraction a month earlier.

On an average outstanding basis, the monetary base stood at ¥532.6 trillion in October, slightly below ¥532.8 trillion in September.

Meanwhile, the seasonally adjusted annualized monthly growth rate turned positive at 4.9%, following a 10.2% decline in September.



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Japan Monetary Base Declines for 15th Straight Month
Japan’s monetary base contracted by 13.6% year-on-year in October 2026, marking the 15th consecutive month of decline, although the pace eased from a 15.2% drop in September. The latest contraction was driven by a 16.4% fall in current account balances at the Bank of Japan, following an 18.3% decline in September, while banknotes in circulation fell 2.3% (vs. 2.0% in September) and coins in circulation eased 1.1% (vs. 1.2%). Reserve balances also declined by 15.2%, compared with a 17.3% contraction a month earlier. On an average outstanding basis, the monetary base stood at ¥532.6 trillion in October, slightly below ¥532.8 trillion in September. Meanwhile, the seasonally adjusted annualized monthly growth rate turned positive at 4.9%, following a 10.2% decline in September.
2026-11-03
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