Bank of Japan definition

Bank of Japan

The Bank of Japan (BOJ) is Japan’s central bank, responsible for monetary policy, issuing currency, maintaining a stable financial system, and providing settling and clearing services.

The Bank of Japan compiles economic data, research, and analysis, and then makes the information available to the public. The Bank of Japan is not independent of Japan’s government, and its headquarters are in Tokyo.

Japan central bank interest rate

The BOJ manipulates interest rates for currency and monetary control by using operational instruments such as money market operations. The Policy Board decides the monetary policy at Monetary Policy Meetings (MPMs).

At the MPMs, the Policy Board discusses the nation’s economic and financial situation, sets guidelines for money market operations, and decides the Bank’s monetary policy stance for the immediate future.

MPMs are held eight times a year over two days. The Policy Board’s nine members – consisting of the Governor, two Deputy Governors, and six other members – make monetary policy decisions like interest rate decisions by a majority vote.

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