A government-proposed bill to revise the Bank of Japan Law and give the central bank greater independence cleared the Lower House Finance Committee late May 21.

The bill is expected to be voted on at a plenary session of the chamber May 22. The proposed revisions would be the first comprehensive changes to the BOJ Law since it was enacted in 1942.

The bill aims to galvanize the bank’s policy board and make the bank more autonomous from government interference, especially from the Finance Ministry. At the same time, BOJ policymaking would be called on to become more transparent on such issues as raising or lowering its key discount rate.

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