AI Data Insight
Japan's real M3 money supply fell to 1633.2 trillion yen in the fourth quarter of 2026, showing a continuous downward trend compared to the previous value of 1638.3 trillion yen. As the Bank of Japan gradually advances the normalization of its monetary policy and maintains the policy rate at 1.25%, the reduction in liquidity reflects a cooling in funding conditions. Going forward, close attention must be paid to the depreciation pressure on the yen and the central bank's pace of tightening to prevent domestic demand recovery from facing headwinds.