Japan Monetary Base growth contracts more than expected to 7.8% versus 9% forecast

Source Fxstreet
  • Japan’s Monetary Base grew less than markets expected, slipping to 7.8%.
  • Markets expected an uptick to 9%.
  • Annualized Monetary Base growth hit 8.9% in November.

December’s YoY Japan Monetary Base slipped to 7.8% growth for the year ended December, coming in less than median market forecasts of 9%, and slipping further back from November’s annualized print of 8.9%.

The seasonally adjusted figure declined steeply, with the Monetary Base declining by 14.5% after cyclical factors were adjusted for.

Market Reaction

The USD/JPY is trading in a tight range at the intraday level, but the Yen appears to be giving up early ground on Friday as the US Dollar continues to push back towards 145.00 against the JPY.

USD/JPY Hourly Chart

About Japan’s Monetary Base

The Monetary Base released by the Bank of Japan is the "Currency Supplied by the BoJ" including all the JPY in circulation, encompassing notes and coins as well as money held in bank accounts. It is considered as an important indicator of inflation, as monetary expansion adds pressure to the exchange rates. An acceleration of monetary base is considered as positive for the JPY, whereas a decline is seen as negative.
 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
When is the BoJ rate decision and how could it affect USD/JPY?The Bank of Japan (BoJ) will announce its interest rate decision between 03.30 and 05.00 GMT, followed by Governor Kazuo Ueda's press conference at 06.30 GMT.
Author  FXStreet
Dec 19, Fri
The Bank of Japan (BoJ) will announce its interest rate decision between 03.30 and 05.00 GMT, followed by Governor Kazuo Ueda's press conference at 06.30 GMT.
placeholder
Top 10 crypto predictions for 2026: Institutional demand and big banks could lift BitcoinCrypto’s 2026 outlook hinges on whether institutional demand returns—via ETFs, banks and digital-asset treasury buyers—with BTC facing a wide range between support near $80,600 and a potential $140,259 upside target, while stablecoins, AI tokens, Solana growth and regulation remain key themes.
Author  Mitrade
19 hours ago
Crypto’s 2026 outlook hinges on whether institutional demand returns—via ETFs, banks and digital-asset treasury buyers—with BTC facing a wide range between support near $80,600 and a potential $140,259 upside target, while stablecoins, AI tokens, Solana growth and regulation remain key themes.
placeholder
Silver Price Forecast: XAG/USD extends bull run to near $72.70 as Fed dovish bets remain steadySilver price (XAG/USD) rallies further to near $72.70 during the early European trading session on Wednesday.
Author  FXStreet
Dec 25, Thu
Silver price (XAG/USD) rallies further to near $72.70 during the early European trading session on Wednesday.
placeholder
Markets in 2026: Will gold, Bitcoin, and the U.S. dollar make history again? — These are how leading institutions thinkAfter a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
Author  Insights
Dec 25, Thu
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
19 hours ago
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
goTop
quote