Japan’s monetary base contracted further in August 2026, underscoring an ongoing tightening in liquidity conditions. According to the latest data updated on 1 September 2026, the monetary base fell 15.7% year-over-year in August, compared with a 13.9% year-over-year decline in July 2026.
The figures are calculated on a year-over-year basis, comparing each month with the same month a year earlier. The deterioration from July to August signals a continued, and even accelerating, shrinkage in the amount of money supplied by the central bank, as measured by the monetary base. Investors and analysts will likely be watching subsequent releases closely for signs of whether this downward trend stabilizes or deepens further in the coming months.
