You can stop wondering what the Bank of Japan is up to.

The Nikkei posted this overnight:

The Nikkei cited two unnamed sources. As background to this if the Nikkei writes a story like this then its as good as done. That's my 2 cents, could be famous last words but I don't think so.


Now that's out of the way, here's a background on the policy meeting.

The Monetary Policy Board (MPB) is the main decision-making body for monetary policy in Japan:

  • The MPB is composed of the Governor, two Deputy Governors, and six other members
  • The board votes on the proposed measures, and if a majority is reached, the measures are adopted.
  • After the meeting, the BoJ releases a statement outlining the decisions made and the rationale behind them. the Statement is followed up next week by the 'Summary of Opinions' then, many many weeks later, by more detailed Minutes.

In addition to the nine members of the Monetary Policy Board (MPB) there are several other officials and staff who typically attend the meetings, as non-voting participants. These attendees provide information, expertise, and support to the board during its deliberations. Typical attendees include:

  • The Director-General of the Monetary Affairs Department to provide updates and insights on the monetary situation in the country, including trends in money markets and bank lending
  • The Director-General of the Financial Markets Department to give information on the condition of financial markets
  • The Director-General of the Research and Statistics Department, who offers up data and research on the overall economic situation in Japan and abroad
  • The Director-General of the International Department with information on international economic and financial developments
  • The Head of the Secretariat of the Policy Board facilitates the meeting and ensures the flow of information
  • Other Bank of Japan staff as required
  • And last, but certainly not least, are representatives from Japan's Ministry of Finance (MoF) and the Cabinet Office. They are present as "observers" during MPB meetings. They do not have voting rights, but they are allowed to express views and opinions during the discussions. Their presence reflects the importance of coordination between the central bank and the government on matters of economic policy. It ensures that both the monetary authority (the Bank of Japan) and the fiscal authority (the Ministry of Finance) are aligned and informed about each other's perspectives and actions.
boj Bank of Japan 31 October 2023