FX.co ★ Japan's Monetary Base Shrinks at Slower Rate in February

Japan's monetary base contracted for the second consecutive month in February, though the rate of decline has slowed, according to the latest data updated on March 3, 2025. The monetary base fell by 1.9% year-over-year for the month, following a 2.5% decrease in January.

This gradual easing in the rate of contraction may reflect underlying shifts in the country's economic conditions or monetary policy adjustments. The year-over-year comparison illuminates the evolving economic landscape as Japan confronts the challenges of balancing its economic strategy amidst global and domestic pressures.

These developments suggest that while Japan's monetary base remains in a state of contraction, there are early signs of stabilization compared to the previous month. It remains to be seen how this trend will evolve in the coming months as policymakers and market participants keep a watchful eye on economic indicators to guide their decisions.