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▼ Kazuo Ueda Has Been Appointed Governor Of The Central Bank Of Japan
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The academic has previously served as a member of the central bank's executive committee and will take the place of Haruhiko Kuroda
The government of Japan he has appointed Kazuo Ueda incoming governor of the Bank of Japan (BoJ), and submitted the appointment for approval by both houses of the Diet. Ueda, an academic who was previously a member of the central bank's executive committee, will take over from outgoing governor Haruhiko Kuroda, whose mandate will expire next April.
The government also named 60-year-old Shinichi Uchida as the next executive director of the central bank, while 62-year-old Ryozo Himino, former director of the Financial Services Agency, will assume one of two deputy governor positions.
Ueda's appointment had been anticipated by some newspapers over the weekend, while in the previous days the Japanese press had speculated on the appointment of one of the two outgoing deputy governors of the central bank, Masayoshi Amamiya.
According to the newspaper "Nikkei", it would have been Amamiya himself who rejected the leadership of the BoJ, highlighting that he was the architect and convinced supporter of the ultra-expansive monetary policy that the next central bank management will almost certainly be called upon to review.
The Bank of Japan (BoJ) kept its ultra-expansionary monetary policy stances unchanged on January 18, following a two-day policy meeting closely watched by the markets.
The BoJ is under growing pressure to further review its expansionary monetary policy: the surprise decision taken last month, the bank brought 10-year interest rates to 0,50 per cent, pushed rates up interest rate on 10-year Japanese bonds.
The outgoing governor of the BoJ, Haruhiko Kuroda, however denied that the initiative taken by the central bank constituted a de facto increase in interest rates.
According to many Japanese economists, during 2023 the BoJ will decree a change of pace in its ultra-expansionary monetary policy, starting to limit its scope.
This turnaround by the Japanese central bank – the only major issuing bank in the world to have insisted on the path of quantitative easing despite pressure from investors on the yen – could materialize within the first half of this year.
The direction and timing of the BoJ's next initiative is the subject of unusual attention, also in view of the expiry of the second term of its governor, Haruhiko Kuroda, who in April will conclude a ten-year management marked by a long season of highly expansive policies.
Despite fears related to the weak growth of the world's third largest economy, the Bank of Japan has to deal with an increase in the inflation rate to a 40-year high, partly linked to the devaluation of the national currency.
Last month Mana Nakazora, chief credit strategist at BNP Paribas Japan, urged the Bank of Japan to adjust its policies to gain more flexibility in adjusting key rates, rather than focus entirely on extraordinary stimulus measures.
Nakazora, who is also a member of the Japanese Commerce Ministry commission charged with studying clean energy investment inflows, said the government and central bank should revise the joint statement signed in 2013, in which the BoJ pledged to achieve an inflation rate of 2 percent "as soon as possible" through ultra-expansionary monetary policies.
According to the economist, "the BoJ should change the formulation to give itself more leeway" in adjusting rates on the basis of domestic and international developments.
The government of Japan he has appointed Kazuo Ueda incoming governor of the Bank of Japan (BoJ), and submitted the appointment for approval by both houses of the Diet. Ueda, an academic who was previously a member of the central bank's executive committee, will take over from outgoing governor Haruhiko Kuroda, whose mandate will expire next April.
The government also named 60-year-old Shinichi Uchida as the next executive director of the central bank, while 62-year-old Ryozo Himino, former director of the Financial Services Agency, will assume one of two deputy governor positions.
Ueda's appointment had been anticipated by some newspapers over the weekend, while in the previous days the Japanese press had speculated on the appointment of one of the two outgoing deputy governors of the central bank, Masayoshi Amamiya.
According to the newspaper "Nikkei", it would have been Amamiya himself who rejected the leadership of the BoJ, highlighting that he was the architect and convinced supporter of the ultra-expansive monetary policy that the next central bank management will almost certainly be called upon to review.
The Bank of Japan (BoJ) kept its ultra-expansionary monetary policy stances unchanged on January 18, following a two-day policy meeting closely watched by the markets.
The BoJ is under growing pressure to further review its expansionary monetary policy: the surprise decision taken last month, the bank brought 10-year interest rates to 0,50 per cent, pushed rates up interest rate on 10-year Japanese bonds.
The outgoing governor of the BoJ, Haruhiko Kuroda, however denied that the initiative taken by the central bank constituted a de facto increase in interest rates.
According to many Japanese economists, during 2023 the BoJ will decree a change of pace in its ultra-expansionary monetary policy, starting to limit its scope.
This turnaround by the Japanese central bank – the only major issuing bank in the world to have insisted on the path of quantitative easing despite pressure from investors on the yen – could materialize within the first half of this year.
The direction and timing of the BoJ's next initiative is the subject of unusual attention, also in view of the expiry of the second term of its governor, Haruhiko Kuroda, who in April will conclude a ten-year management marked by a long season of highly expansive policies.
Despite fears related to the weak growth of the world's third largest economy, the Bank of Japan has to deal with an increase in the inflation rate to a 40-year high, partly linked to the devaluation of the national currency.
Last month Mana Nakazora, chief credit strategist at BNP Paribas Japan, urged the Bank of Japan to adjust its policies to gain more flexibility in adjusting key rates, rather than focus entirely on extraordinary stimulus measures.
Nakazora, who is also a member of the Japanese Commerce Ministry commission charged with studying clean energy investment inflows, said the government and central bank should revise the joint statement signed in 2013, in which the BoJ pledged to achieve an inflation rate of 2 percent "as soon as possible" through ultra-expansionary monetary policies.
According to the economist, "the BoJ should change the formulation to give itself more leeway" in adjusting rates on the basis of domestic and international developments.
- February 14, 2023
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