By 2 Min Read* Japan’s M3 money stock reaches a new high for the fourth month in a row* June’s M3 money stock climbs 5.2 percent year over year, the slowest pace since May 2020* Deposit growth slows, and the bank’s balance rises to its second-highest level ever (Adds details from data, background on economy) (Reuters) – TOKYO, July 9 (Reuters) – Japan’s currency in circulation and bank deposits both hit new highs in June, according to data released on Friday, as households and businesses continued to save amid concerns about the economic impact of the COVID-19 pandemic. The report shows how Japan is trailing behind other major countries in recovering from the pandemic’s impact, with the government’s announcement of further state-of-emergency restrictions in Tokyo likely to exacerbate already low consumption. According to Bank of Japan data, Japan’s M3 money stock, which includes currency in circulation and deposits at financial institutions, increased by 5.2 percent in June from a year earlier to a record 1.52 quadrillion yen ($13.84 trillion). The increase came after a 6.8% gain in May and was the slowest since May of last year, according to the data. The decline was partly due to the base effect of significant increases last year, when the pandemic’s first impact caused businesses to stockpile cash. Bank deposits increased 9.3% year over year in June, the slowest pace since April last year, albeit the overall balance – at 863.5 trillion yen – was the second biggest on record, according to the data. 109.8500 yen = $1 Leika Kihara contributed to this report. Shri Navaratnam edited the piece./n
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