MNI BRIEF: Japan H’hold Cash, Deposits at Record JPY1,102 Trln

The balance of cash and deposits held by Japanese households at the end of June rose to a record high of JPY1,102 trillion, up 2.8% from a year earlier, thanks to bonus payments, preliminary data released by the Bank of Japan on Tuesday showed.

The high balance of cash and deposits are alleviating the impact of soaring consumer prices caused by rising resource prices and the weak yen, and helping support consumer spending.

The balance of cash and deposits accounted for 54.9% of the total financial assets.

The balance of financial assets held by Japanese households stood at JPY2,007 trillion at the end of June 2022, up 1.3% y/y. It was the ninth straight quarterly rise, the data showed.

Government bonds held by the BOJ stood at JPY542 trillion at the end of June, up 0.5% y/y and the first rise in four quarters. The BOJ's holdings account for 44.27% of total government debt, the single largest share and up from 43.31% at the end of March.

The balance of government bonds held by non-Japanese totaled JPY167 trillion at the end of June, up 2.7% y/y and accounting for 13.64% of total government bonds, up from 13.60% at the end of March.