TOKYO (AFX-ASIA) - The Bank of Japan said M2+CDs rose 2.9 pct year-on-year in May, the highest level since April 2000, due to the continued rise in M1 following the large level of postal savings maturities.
April M2+CDs rose 2.5 pct. M1 and deposit money in May rose 7.0 pct and 7.3 pct respectively, both the highest levels seen since July 2000. Near money was down 2.4 pct, the lowest level since May 1996, when it fell 2.8 pct.
Broadly defined liquidity was up 2.6 pct in May, compared with a rise of 3.1 pct in April, on continued falls in post office deposits, which fell 4.0 pct in May, compared with a fall of 3.7 in April.
This was the sixth consecutive monthly decline in postal deposits. "Amid falling interest rates, money continued to shift towards higher liquidity," a BoJ official said.