QuestionWhat is the Policy Board of the Bank?
The Policy Board is the Bank's highest decision-making body. Important matters concerning monetary policy and the Bank's business operations are decided by a majority vote after discussions at Policy Board meetings.
Organization of the Policy Board
The Policy Board comprises the Governor, two Deputy Governors, and six Members of the Policy Board. The nine members of the Policy Board are all appointed by the Cabinet, subject to the consent of both houses of the Diet, the House of Representatives and the House of Councillors (in accordance with Article 23, paragraph 1 of the Bank of Japan Act; hereafter the Act).
The Governor, Deputy Governors, and Members of the Policy Board serve five-year terms of office, after which they may be reappointed (Article 24 of the Act).
Policy Board Meetings and Other Responsibilities of the Policy Board
There are two types of Policy Board meetings: Monetary Policy Meetings (MPMs) held for decisions on matters related to monetary policy, and regular Policy Board meetings held for decisions on other matters.
MPMs are held eight times a year. At these meetings, matters decided by the Policy Board include the following (Article 15, paragraph 1 of the Act):
- Determining or altering the guidelines for market operations.
- Determining or altering the basic discount rate, the basic loan rate, and the reserve requirement ratios.
- Determining or altering monetary policy measures (e.g., the types and conditions of bills and bonds as well as the types of collateral pertaining to market operations).
- Determining or altering the Bank's view on economic and financial developments.
Regular Policy Board meetings are held twice a week, in principle. At these meetings, matters decided by the Policy Board include the following (Article 15, paragraph 2 of the Act):
- Conducting business operations contributing to the maintenance of stability of the financial system.
- Conducting operations in the field of international finance.
- Making a budget for expenses, determining important matters concerning the Bank's organization, and altering by-laws as well as the rules for conducting the Bank's business operations.
- Preparing reports to the Diet and the outline of the Bank's business operations.
- Determining other matters deemed necessary by the Policy Board.
In addition to the above, the Policy Board is responsible for ensuring that the duties of the Bank's officers are fulfilled in accordance with the basic principles it has set.
The Current Members of the Policy Board
A brief personal record for each Policy Board member and information on their current terms of office are available at Policy Board.
The Bank makes public the decisions and reports made at MPMs and regular Policy Board meetings. Those made public are in Nippon Ginko Seisaku Iinkai Geppo (Monthly Report of the Policy Board of the Bank of Japan, available only in Japanese).
The Policy Board members also make speeches and hold press conferences, in which they present their views on the current economic situation and the monetary policy stance, for example. Summaries of the Policy Board members' speeches and statements are available at Speeches and Statements.