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What is monetary policy and how is it carried out in Japan?

As the central bank of Japan, the Bank of Japan carries out currency and monetary control to achieve price stability, thereby contributing to the sound development of the national economy, as stipulated in Articles 1 and 2 of the Bank of Japan Act. To this end, the Bank encourages short- and long- term interest rates to remain at target levels and purchases assets, mainly through open market operations.

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