AI Data Insight
Japan's real M1 money supply in Q3 2026 (September) fell to 1,081.9 trillion yen, further shrinking from the previous value of 1,087.5 trillion yen, reflecting a continued tightening of market liquidity. As the Bank of Japan (BOJ) raised interest rates to 1.25% in September, the decline in M1 confirms the crowding-out effect of rising funding costs on demand deposits. Going forward, it is necessary to closely monitor the impact of inflation and geopolitics on the subsequent interest rate path.