Definition
Japan's central bank, which sets interest rates and manages money conditions for the yen.
The story
For years the Bank of Japan kept rates below zero to fight weak growth and falling prices. In March 2024 it raised rates for the first time in 17 years, ending negative rates. Because Japan's rates have been so low, its decisions matter for the yen carry trade worldwide.
Why markets watch it
A surprise from the Bank of Japan can jolt the yen, global bonds and stock markets.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms