Japan’s monetary base rose to a record for the 12th straight month at the end of July, NHK reported. Bank of Japan officials say the figure topped ¥325.7 trillion ($2.6 trillion). That’s a gain of about $5.5 billion since the end of June. The monetary base includes cash in circulation, as well as deposits that commercial banks hold at the central bank. The BOJ aims to expand the amount at a rate of more than $640 billion a year to reach its 2% inflation target. The central bank’s aggressive monetary easing program includes the purchase of government bonds and other financial assets to pump money into financial markets. Even so, consumer inflation is hovering around zero percent year-on-year, due in large part to falling crude oil prices. BOJ officials believe inflation will rise to about 2% by around mid-2016. Analysts are waiting to see if prices will start to pick up from the end of this year as the officials predict.
