What it measures
At each Monetary Policy Meeting the Policy Board decides the stance of policy, including its short-term policy interest rate. The calendar shows the policy rate after each decision.
Who publishes it and when
The Policy Board holds eight Monetary Policy Meetings a year, each over two days. The statement is released when the meeting ends, usually around midday Tokyo time but with no fixed minute, so the calendar marks the time as approximate. The Governor holds a press conference in the afternoon. The Bank publishes its assessment of the economy and prices after every meeting.
How it is put together
The Policy Board has nine members, the Governor, two Deputy Governors and six other members, and decides by majority vote. Since January 2013 its price stability target has been 2% inflation in the consumer price index.
What traders watch
Because the time is not fixed, traders watch for the headline from the moment the meeting can end. They read the vote, any change to the outlook for prices and wages, and the Governor's comments about the next steps.
How markets have usually reacted
A rise, or signs that one is coming, has often strengthened the yen and lifted Japanese bond yields, and has sometimes weighed on the Nikkei. A cautious tone has often weakened the yen. Large yen moves can spill over into other markets when traders who borrowed in yen unwind those positions.
Common mistakes
- Waiting for an exact release minute that does not exist: the decision can come early or late.
- Reacting to the rate alone. When the decision itself is expected, the statement, the vote and the press conference usually decide the move.
- Trading the first seconds: spreads widen and prices can jump in both directions before settling.
How a higher or lower figure is usually read
A rate rise is usually read as supportive for the yen and a cut as negative. Changes in guidance or other policy tools can matter as much. Not a signal.
Release history
| Date | Period | Actual | Previous |
|---|---|---|---|
| — | 1.25% | 1.25% |
Related news
- Japan National CPI
- Japan Tokyo CPI
- Japan GDP (preliminary)
- FOMC Rate Decision (Federal Reserve)
- Economic calendar: every release this week in your time zone
- Lot size calculator: keep your risk the same around news
- How to use an economic calendar: what happens around a release, and how to plan for it
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Official source
Calendar data: www.boj.or.jp
Published by Bank of Japan, Policy Board: www.boj.or.jp