Japan's monetary base hits new record high in April

Japan's monetary base surged 48.5 percent in April from a year earlier to JPY 222.08 trillion (USD 2.2 trillion), marking an all-time high for the 14th straight month, the central bank said Friday. The monetary base, which comprises money supplied to the markets by the Bank of Japan (BOJ), including cash in circulation and commercial banks' deposits held at the BOJ's current accounts, also grew for the 24th month in a row. An expansion in the monetary base has inflationary effect. In April 2013, the BOJ introduced drastic measures to double the monetary base in two years in a bid to pull Japan out of deflation that has lasted for nearly 15 years. It aims to increase the monetary base at an annual pace of about JPY 60-70 trillion (USD 590-680 billion), hoping the measure will help firms expand business operations. The monetary base is projected to rise to JPY 270 trillion (USD 2.6 trillion) at the end of this year if the central bank conducts its monetary operations as planned. The BOJ board decided on Wednesday that it will maintain its massive monetary easing program and continue to conduct money market operations