Key Money-Supply Gauge Continues Record Growth In Aug

TOKYO (NQN)--Japan's benchmark measure of money supply grew 3% year on year in August, the Bank of Japan said Tuesday.

The balance of M3 -- currency in circulation, money in demand-deposit accounts, time deposits and certificates of deposit -- averaged 1,160 trillion yen, unchanged from the previous month and matching its highest growth since the data became available in April 2004.

The expansion is being driven by the trend among companies and individuals to hold more cash reserves.

By category, the balance of deposit money -- made up of ordinary deposits and current deposits -- rose 5.5% on the year but fell 0.1 percentage point on the month. The balance of currency in circulation rose 3.0% on the year and 0.1 point on the month. The balance of quasi-money, which includes time deposits, rose 1.1% on the year and remained unchanged from the previous month. The balance of certificates of deposit fell 0.2% on the year.

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