Japan's central bank, established in 1882, responsible for issuing the Japanese yen, implementing monetary policy, and maintaining the stability of the financial system. The BoJ has been notable for its prolonged ultra-loose monetary policy, including negative interest rates and yield curve control (YCC), which caps the yield on 10-year Japanese government bonds to stimulate economic activity and combat deflation. Policy announcements from the BoJ are closely watched by global forex and bond traders because of the yen's role as a major reserve and funding currency.
Example
“The Japanese yen weakened sharply after the Bank of Japan maintained its negative interest rate policy while other major central banks continued tightening, widening the rate differential.”