Japan monetary base up 17 percent

Japan's June monetary base, which includes cash in the economy, soared 17 percent year-on-year, reflecting central bank actions after the March 11 disaster. The announcement was made by the Bank of Japan, which pumped massive amounts of cash to provide liquidity after the country's northeast was devastated by the March 11 earthquake and tsunami, Kyodo News reported. The June average daily balance of the monetary base, which also includes current account deposits held by financial institutions at the central bank, expanded for the 34th straight month to 113.48 trillion yen, or $1.404 trillion. The excess liquidity provided by the central bank was designed to help banks in the devastated areas continue lending to help in the recovery.