Bank of Japan meeting on January 23, 2018

Bank of Japan, BOJ, Jpy, Yen

Bank of Japan, Yen, JpyThe Bank of Japan (BoJ) in the meeting on January 23, 2018, has left the interest rate unchanged at -0.10%. You can download the Statement on Monetary Policy and the Outlook report (both in pdf format) at the end of the article.

The Bank of Japan, as the central 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 a market economy, individuals and firms make decisions on whether to consume or invest, based on the prices of goods and services. When prices fluctuate, individuals and firms find it hard to make appropriate consumption and investment decisions, and this can hinder the efficient allocation of resources in the economy. Unstable prices can also distort income distribution.

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 of 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.

MPMs are held eight times a year, each time for two days. At the MPMs, the Policy Board members discuss and decide the guideline for monetary market operations. The 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.

In addition to in-depth research and analysis on economic and financial conditions, the Bank studies and examines various matters concerning monetary policy, such as monetary policy strategies and instruments as well as the financial system. The Bank makes use of its research findings as the basis for deciding monetary policy.

If you are interested, you can find all the previous Outlook reports, the Summary of Opinions and the Minutes on the Bank of Japan. You find also the Schedule 2018. You can check the meetings scheduled for 2018 of the world's leading Central Banks and the last Central Banks reports.

pdf, format, file, download  Statement on Monetary Policy

pdf, format, file, download  Outlook Report


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