Bank of Japan chief Kuroda reappointed for second term

by Dramelin 8:30 PM 0 comments

The selection of the new BOJ leadership comes at a crucial time for Japanese and global markets, which have been rattled in recent weeks on expectations major central banks will whittle down their crisis-mode stimulus.
In a widely expected move, the government nominated Kuroda to serve another five-year term when the current one ends in April, a sign of premier Shinzo Abe`s confidence over the governor`s efforts to pull Japan`s economy out of stagnation.
The government also submitted to parliament its nomination of Masazumi Wakatabe, a professor at Waseda University and an advocate of aggressive monetary easing, as deputy governor.
The other deputy governor post went to BOJ Executive Director Masayoshi Amamiya, a veteran central banker known for masterminding various monetary policy steps.
The choice of Wakatabe, a professor at Waseda University, could complicate Kuroda`s task of engineering a slow but steady exit from the BOJ`s radical monetary stimulus.
But it could help the BOJ dispel market speculation it may dial back stimulus earlier than expected, and allow it to shift gear back toward more easing if continued yen rises threaten Japan`s economic recovery, some analysts say.
While Kuroda has pledged to maintain the BOJ`s ultra-easy policy, he has refuted arguments that the stimulus programme needs to be expanded and has signaled the possibility of raising interest rates if inflation prospects brighten.