Tag: Bank of Japan

The Bank of Japan (BOJ) is Japan’s central bank, a cornerstone of the world’s fourth-largest economy. Established in 1882, the BOJ holds the critical mandate of achieving price stability and ensuring the stability of Japan’s financial system, thereby contributing to the sound development of the national economy.

Unlike many other central banks, the BOJ has long grappled with deflationary pressures, leading it to implement highly unconventional monetary policies over decades. These have included a negative interest rate policy, massive quantitative easing programs (purchasing large amounts of government bonds and even equities), and “yield curve control” to keep long-term interest rates anchored.

Its Policy Board, comprising the Governor and other experts, meets regularly to determine monetary policy, influencing interest rates, currency value (the Japanese Yen), and overall economic activity. The BOJ also issues banknotes, provides settlement services for financial institutions, and conducts extensive economic research. Its unique policy approaches and the sheer size of the Japanese economy mean that the BOJ’s decisions have significant ripple effects on global financial markets, impacting investors and businesses from Tokyo to Surat.