AI Data Insight
Japan's real M1 money supply fell to 1087.5 trillion JPY in July 2026, a decrease of 3 trillion JPY from the previous month, marking a three-month consecutive declining trend. As the Bank of Japan (BOJ) initiates rate hikes and advances the normalization of monetary policy, the momentum of demand deposits has significantly contracted. The market will continue to monitor the dual effects of the high-interest-rate environment on overall liquidity and domestic consumption in the future.