QuestionWhat kind of effects do central bank finances have on monetary policy conduct?

The purpose of monetary policy is to achieve price stability. This is what the Bank of Japan Act stipulates as one of the Bank of Japan's missions. Considerations of the Bank's finances do not prevent it from implementing necessary policies. This applies not only to monetary policy but also to the basic role of central banks in general, such as maintaining the stability of the financial system, the stable operation role as the government's bank, and the smooth operation of the payment and settlement system.

Central banks are unique in terms of their profit structure and their function as issuers of banknotes, which are given to them in order to make contributions to the economy through policy conduct, and thus are different from private financial institutions and business corporations. Central bank profits change as a result of the necessary policies and operations pursued by the central bank.