Japan’s money stock expanded at an unchanged annual pace in September, with M2 up 2.0% and M3 up 1.2%, preliminary Bank of Japan figures showed.
The annual rates for both measures matched their August readings. M2’s year-over-year growth had risen from 1.6% in January to 2.5% in May before easing to 2.2% in June, 2.1% in July and 2.0% in August and September. M3 moved from 1.0% in January to 1.7% in May, then edged down to 1.5% in June, 1.3% in July and 1.2% in August and September.
After seasonal adjustment, M2’s increase from August translated to an annualized rate of 2.4%, versus 1.3% for August. M3’s comparable pace rose to 1.4% from a revised 0.6% in August. These monthly readings are expressed at annual rates, so they offer a different comparison from the year-over-year changes.
M2 averaged 1,295.6 trillion yen outstanding in September, and M3 averaged 1,638.3 trillion yen. Both balances were below the revised August averages: 1,296.5 trillion yen for M2 and 1,639.7 trillion yen for M3, despite steady year-over-year growth rates.
The BOJ’s broadly defined liquidity measure, L, includes M3 and additional components. Its average September balance was 2,344.3 trillion yen, compared with a revised 2,343.2 trillion yen in August. L’s year-over-year increase eased to 4.3% from 4.4%, while its seasonally adjusted annualized pace of monthly change rose to 2.9% from 2.1%. Its annual growth rate climbed from 2.5% in January to 4.7% in May, then declined each month through September.
For full-year 2025, the BOJ reported average balance growth of 1.2% for M2, 0.7% for M3 and 2.6% for L. The central bank revised figures from January 2026 onward and marked September’s data as preliminary.
