BoJ Interest Rate Decision
- Location: Japan
- Currency: JPY
This event starts in:
BoJ Interest Rate Decision is made 8 times a year. The regulator’s interest rate is used to provide loans to commercial banks. Establishing an interest rate is one of the main tools of the monetary policy used by the Bank of Japan to regulate the strength of its currency. Bank of Japan (BOJ) policy board members come to a consensus on where to set the rate.
When the economy is bad, interest rates will be lowered and interest rates will be raised when the economy is good. There were also years when interest rates became negative because the economy was too bad. Due to the long-term recession, known as "the lost 20 years", Japan banks are making long-term monetary easing.
Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.
