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The Self-Assessment Report on Transparency Practices for Monetary Policy

August 16, 2002
Bank of Japan

Click on fsap02.pdf (70KB) to download the full text.

The Bank of Japan decided to release its self-assessment report of its transparency practices in the conduct of monetary policy based on the monetary policy part of the Code of Good Practices on Transparency in Monetary and Financial Policies developed and adopted by the International Monetary Fund (IMF) in 1999. The Bank has made every effort to enhance the transparency in monetary policy since the new Bank of Japan Law came into effect in 1998. The Bank hopes that the release of the self-assessment report will aid understanding of Japan's monetary policy framework at home and abroad.

The code identifies four broad categories for transparency in monetary policy: (1) clarity of roles, responsibilities, and objectives of central banks; (2) open process for formulating and reporting monetary policy decisions by central banks; (3) public availability of information of policies; and (4) accountability and assurances of integrity by central banks.

Strenuous efforts have been made to develop and adopt international standards particularly in the financial sector. The aim of these efforts is to strengthen the financial system and market infrastructure worldwide, thereby achieving global financial stability. The implementation of the above IMF code is considered to be beneficial, because it contributes to further enhancing transparency in the monetary policy frameworks.

The attached report describes the Bank's efforts on the enhancement of transparency in monetary policy in line with these international initiatives, based on the IMF code.