<p>The Bank of Japan (BOJ) is Japan's <a href="/NewSite/encyclopedia/central-bank/" class="ency-link">central bank</a>, responsible for implementing monetary policy to achieve its 2% inflation target and maintain financial stability. Established in 1882, it's the nation's sole note-issuing authority and acts as the lender of last resort to financial institutions.</p>
<p><strong>Why it matters:</strong> The BOJ's policies significantly impact the Japanese economy and global markets. Its quantitative easing and negative interest rate policies have been crucial in combating deflation and stimulating growth. Its interventions also influence the value of the yen, affecting international trade and investment.</p>