Japanese bank lending fell for a 15th consecutive month last month and the country’s current account surplus narrowed significantly in January.
Figures out yesterday in Tokyo show that the country’s current account surplus narrowed sharply in January to 461.9 billion yen ($US5.61 billion), 48% down from December’s surplus of 1.195 trillion yen in December.
The smaller surplus came as the trade account swung to a ¥394.5 billion deficit, from December’s ¥768.8 billion surplus, with exports for January up 2.9% (14% in December) against a 15.6% jump in rise for imports, against a 12.8% rise in December for exports.
That’s a huge swing of more than one trillion yen in the trade account and follows rising prices for a host of commodities such as oil and gas, coal and iron ore.
Meanwhile bank lending fell for a 15th straight month last month, despite the aggressive moves by the Bank of Japan to induce an increase.
The Bank of Japan has cut interest rates virtually to zero (0.10%), set up a fund to buy assets ranging from government bonds to real estate investment trusts, and created a scheme to encourage lending to nascent industries with high potential for growth – all to no avail.
The balance of outstanding loans held by Japanese banks fell 1.8% in February from a year earlier, the same rate of decline in January.
