The Bank of Japan is the central bank of Japan. The BOJ‘s objectives are to issue banknotes and to carry out currency and monetary control whilst ensuring smooth settlement of funds among banks and other financial institutions, thereby contributing to the maintenance of stability of the financial system. In addition, the Bank Of Japan is responsible for currency and monetary control and shall be aimed at achieving price stability, thereby contributing to the sound development of the national economy.
The Bank of Japan’s monetary policy committee consists of the BOJ governor, two deputy governors, and six other members. Because Japan is very dependent on exports, the BOJ has an even more active interest than the ECB does in preventing an excessively strong currency. The central bank has been known to come into the open market to artificially weaken its currency by selling it against U.S. dollars and euros. The BOJ is also extremely vocal when it feels concerned about excess currency volatility and strength.
To maintain price stability and to ensure the stability of the financial system, which makes inflation the central bank’s top focus.
Frequency of Meeting
Once or twice a month
Outline Monetary Policy
The Bank of Japan, decides and implements monetary policy with the aim of maintaining price stability. Price stability is important because it provides the foundation for the nation’s economic activity. In implementing monetary policy, the Bank influences the formation of interest rates for the purpose of currency and monetary control, by means of its operational instruments, such as money market operations. The basic stance for monetary policy is decided by the Policy Board at Monetary Policy Meetings (MPMs). At MPMs, the Policy Board discusses the economic and financial situation, decides the guideline for money market operations and the Bank’s monetary policy stance for the immediate future, and announces decisions immediately after the meeting concerned. Based on the guideline, the Bank sets the amount of daily money market operations and chooses types of operational instruments, and provides and absorbs funds in the market.
(excerpt from Bank of Japan Website)
Learn more about the BOJ & how they determine Monetary Policy
MEMBERS of the POLICY BOARD:
Kikuo Iwata, Deputy
Hiroshi Nakaso, Deputy