Japan's monetary base growth slows as BOJ shifts from radical stimulus

The Bank of Japan seems to be phasing out its massive stimulus programme, with analysts predicting a further slowdown in cash circulation.

BOJ data showed a modest 1.6% year-on-year increase in March, the fifth consecutive month of deceleration and the smallest rise since August last year.

The central bank terminated 8 years of negative interest rates and other unconventional policies, shifting focus from reflating growth with massive monetary stimulus.

BOJ Governor Ueda hinted at reducing bond purchases and transitioning to market-driven long-term interest rates.