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QuestionWhat are the purposes of the Bank?

Answer

The purposes of the Bank are to aim at achieving price stability and to contribute to financial system stability.

Price Stability

The purpose of the Bank's monetary policy is to aim at achieving price stability. Price stability is an indispensable foundation for the economy in achieving stable and sustainable growth, and in this aim, the Bank fulfills its role of contributing to the sound development of the national economy (Article 1, paragraph 1, and Article 2 of the Bank of Japan Act; hereafter the Act).

Financial System Stability

Another important purpose of the Bank is to ensure the smooth and stable operations of payment and settlement systems, thereby contributing to financial system stability (Article 1, paragraph 2 of the Act). The Bank seeks to achieve this, such as through the provision of payment and settlement services to financial institutions and the appropriate exercise of the lender of last resort function.

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