The Bank of Japan says the country's monetary base dropped in July for the first time in 6 months. It says that's due to seasonal factors, and that liquidity still remains at very high levels.
The BOJ said on Monday that the monetary base exceeded 2.37 trillion dollars at the end of July, down 0.1 percent from the previous month.
The bank says the drop is merely a backlash from increased cash circulation in June, which is the time of the year when the government typically redeems bonds and pays out pensions.
It says the monetary base has gone up more than 40 percent compared to July last year.
The BOJ has adopted aggressive easing since April last year. It has pumped large amounts of money into financial markets to spur economic activity.
The bank aims to boost the monetary base to more than 2.6 trillion dollars by the end of this year.