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// definition

BoJ

Bank of Japan

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Macro & central banks

Short definition

Japan's central bank. It sets Japanese monetary policy, steers asset purchases or sales, and can act as operational agent in currency interventions decided by the Ministry of Finance.

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Intuition

The BoJ sets the starting price of the yen carry and shapes global tolerance for cheap funding.

Why it matters now

A change of tone at the BoJ can turn a profitable carry position into currency and liquidity risk.

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