Japan’s monetary base shrank at an even faster pace in February 2026, extending its year‑over‑year decline and signaling continued tightening in underlying liquidity conditions.
According to data updated on 2 March 2026, the monetary base fell 10.6% year‑over‑year in February, compared with a 9.3% year‑over‑year drop recorded in January 2026. Both figures measure changes relative to the same month a year earlier, highlighting a steady acceleration in the pace of contraction.
The latest reading underscores an ongoing reduction in the volume of cash and reserves supplied to the financial system. Investors and analysts will be watching subsequent releases closely to assess whether this deepening decline in the monetary base continues and how it may feed through to credit conditions, market liquidity, and broader economic activity in Japan over the coming months.
