AI Data Insight
Japan's M2 money supply for Q1 2026 reached 1277.9594 trillion yen, marking a steady increase from the previous quarter's (Q4 2025) 1275.174 trillion yen, while the 2% year-on-year growth rate in March significantly exceeded market expectations. Ample liquidity, coupled with inflation risks driven by recent energy price hikes, is prompting markets to bet that the Bank of Japan will accelerate the pace of monetary policy normalization.