The Bank of Japan (BoJ) is the central bank of Japan.
It is a juridical person established based on the Bank of Japan Act of 1882 and is not a government agency or a private corporation
The bank is often called Nichigin (日銀) for short.
It has its headquarters in Chūō, Tokyo, and is run by a group of individuals known as “The Policy Board“.
The Bank of Japan’s objectives are:
- “to issue banknotes and to carry out currency and monetary control” and
- “to ensure smooth settlement of funds among banks and other financial institutions, thereby contributing to the maintenance of the stability of the financial system.”
The Bank of Japan Act also stipulates the Bank’s principle of currency and monetary control as follows:
“currency and monetary control by the Bank of Japan shall be aimed at achieving price stability, thereby contributing to the sound development of the national economy.”
The BoJ achieves this by influencing short- and long- term interest rates to remain at target levels and purchases assets, mainly through open market operations.
Monetary policy is decided by the Policy Board at Monetary Policy Meetings (MPMs).
At MPMs, the Policy Board discusses the nation’s economic and financial situation, sets the guidelines for money market operations and the Bank’s monetary policy stance for the immediate future.
MPMs are held eight times a year for two days.
Monetary policy decisions are made by a majority vote of the nine members of the Policy Board, which consists of the Governor, the two Deputy Governors, and the six other members.
Immediately after an MPM, the Outlook for Economic Activity and Prices (Outlook Report), also known as the “The Bank’s View”, is released.
A week after the MPM, a Summary of Opinions is released. This is literally a summary of opinions on economic and financial developments and monetary policy.
About two months after the MPM, the minutes of the meeting will be released, which is called…surprise surprise..the MPM Minutes.
A list of scheduled dates of the meetings, policy statements, minutes of the meetings; and the Outlook for Economic Activity and Prices (the Outlook Report) can be found on the BoJ’s website.