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☆ Some at Bank of Japan baulked at ex-chief Kuroda's 'bazooka' stimulus, 2013 meeting minutes show
▼ + stars: | 2023-07-31 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

[1/2] Bank of Japan (BOJ) Governor Haruhiko Kuroda speaks during a news conference after attending the Monetary Policy Meeting at BOJ headquarters in Tokyo, Japan January 18, 2023, in this photo released by Kyodo. TOKYO, July 31 (Reuters) - Some Bank of Japan (BOJ) policymakers baulked at former chief Haruhiko Kuroda's idea of deploying a "bazooka" massive stimulus a decade ago, unconvinced central banks had the power to jolt public perceptions, accounts of the meeting released on Monday showed. Former banker Koji Ishida said he would propose reviewing the stimulus programme if no tangible results were seen one year into its launch, the minutes showed. Since then, the BOJ has capped long-term borrowing costs at about zero and has pledged to maintain ultra-low interest rates until its 2% inflation target is sustainably met and accompanied by wage growth. After serving two, five-year terms, Kuroda stepped down from the top BOJ post in March.

Persons: Haruhiko Kuroda, baulked, Haruhiko, Shinzo Abe, Kuroda, Masaaki Shirakawa, Hiroshi Nakaso, Takahide Kiuchi, Takehiro Sato, Sato, Koji Ishida, Leika Kihara, Jamie Freed Organizations: Bank of Japan, Kyodo ., Thomson Locations: Tokyo, Japan, Kyodo . TOKYO

[1/3] New Governor of Bank of Japan Kazuo Ueda waits for Japanese Prime Minister Fumio Kishida before their meeting at prime minister?s official residence in Tokyo, Japan, April 10, 2023. "Given high economic uncertainty, the BOJ will communicate closely with the government and guide monetary policy flexibly," Ueda told reporters after meeting with Prime Minister Fumio Kishida to receive his official appointment letter. In parliamentary confirmation hearings in February, Ueda has stressed the need to keep ultra-easy policy to ensure Japan sustainably achieves the BOJ's 2% inflation target backed by wage growth. Ueda will chair his first policy meeting on April 27-28, when the board produces fresh quarterly growth and price forecasts extending through fiscal 2025. Ueda served as BOJ board member from 1998 to 2005, during which the central bank introduced zero interest rates and then quantitative easing to combat deflation and economic stagnation.

☆ Japan's new central bank chief assumes office as global risks loom
▼ + stars: | 2023-04-10 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

[1/2] The Japanese government's nominee for the Bank of Japan (BOJ) Governor Kazuo Ueda speaks during a hearing session at the lower house of the parliament in Tokyo, Japan, February 24, 2023. The 71-year-old academic's term began on Sunday, succeeding Haruhiko Kuroda, whose second, five-year term ended on Saturday. Ueda and his two deputy governors, Shinichi Uchida and Ryozo Himino, will hold a joint news conference at 1015 GMT on Monday. Japan's long-stagnant inflation and wage growth are showing budding signs of change. Ueda served as BOJ board member from 1998 to 2005, during which the central bank introduced zero interest rates and then quantitative easing to combat deflation and economic stagnation.

☆ Ex-BOJ deputy governor Nakaso predicts tweak or end to YCC, Nikkei reports
▼ + stars: | 2023-04-08 | by ( ) www.reuters.com time to read: +2 min

"The increasing side-effects are a sign the policy effect (of YCC) is working its way through the economy," Nakaso said. "When the appropriate timing comes, the BOJ's new leadership will likely modify or abolish YCC," or yield curve control. The next challenge will be to end negative interest rates and start a full-fledged policy normalisation, Nakaso said. Under YCC, the BOJ guides short-term interest rates at -0.1% and caps the 10-year bond yield around zero as part of efforts to sustainably hit 2% inflation. Nakaso, who had been considered among candidates to succeed Kuroda, served as deputy BOJ governor for five years until 2018.

Kazuo Ueda, a 71-year-old university professor who has kept a low profile despite strong credentials as a monetary policy expert, ticked some important boxes. While he was not even on the list of dark horse candidates floated by the media, Ueda was well known in global central bank circles. The bank's preferred choices were incumbent deputy governor Amamiya, as well as former deputies Hiroshi Nakaso and Hirohide Yamaguchi, given their deep knowledge on monetary policy. Matsuno said he hoped the BOJ works closely with the government and guides monetary policy flexibly, when asked whether Ueda's appointment could lead to a retreat from Abenomics. While he warned of the rising cost of the BOJ's yield control policy, Ueda has called for the need to keep monetary policy loose to ensure Japan stably achieves the bank's 2% inflation target.

☆ Bank of Japan's Kuroda has 'set the stage' for his successor, says financial services firm
▼ + stars: | 2023-02-10 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBank of Japan's Kuroda has 'set the stage' for his successor, says financial services firmJesper Koll of Monex Group discusses the differences between the two front-runners for the position of Bank of Japan's next governor, Masayoshi Amamiya and Hiroshi Nakaso.

☆ BOJ's deputy governor Amamiya sees no imminent need to tweak YCC
▼ + stars: | 2023-02-10 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

"YCC is an extraordinary policy, so we must carefully balance the benefits and costs," Amamiya said. "For now, I don't see the need to make further steps to enhance the flexibility of YCC," he added. The government will present its nominees for the new BOJ governor and two deputies to parliament on Feb. 14, a ruling party lawmaker told reporters on Friday. Analysts see Amamiya as being more dovish on monetary policy than other contenders like former deputy governors Hiroshi Nakaso and Hirohide Yamaguchi. He stressed the need to maintain current stimulus to ensure inflation hits the BOJ's 2% target in a sustainable manner.

☆ Japan's Kishida says global communication skills key criteria for picking new BOJ head
▼ + stars: | 2023-02-08 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

"I'd like to select (the next BOJ governor) taking these factors into account," Kishida said, when asked by an opposition lawmaker what the qualifications Kuroda's successor must have. Markets are closely watching the appointment of the new BOJ governor for clues on how quickly the central bank could phase out its massive stimulus programme. The government is considering presenting to parliament its nominees for next BOJ governor and two deputy governors next week, sources told Reuters. Kishida had earlier said no decision had been made, after the Nikkei newspaper reported on Monday the government has sounded out BOJ Deputy Governor Masayoshi Amamiya to succeed Kuroda. Among other key contenders, former BOJ Deputy Governor Hiroshi Nakaso has long experience overseeing the BOJ's market operations and international affairs.

☆ Factbox: Who are candidates to become next BOJ governor?
▼ + stars: | 2023-02-05 | by ( Leika Kihara | ) www.reuters.com time to read: +5 min

The Nikkei newspaper reported the government has sounded out BOJ Deputy Governor Masayoshi Amamiya as the next governor, citing anonymous government and ruling party sources. The government will present a nominee for BOJ governor, and that for two deputy governors, to parliament later this month. But he also said in July the BOJ must "always" think about the means of exiting ultra-loose monetary policy. FEMALE DEPUTY GOVERNOR CANDIDATESNo female has yet served as BOJ deputy governor or governor, a tradition Kishida may seek to change to enhance diversity. FINANCIAL BUREAUCRAT DEPUTY GOVERNOR CANDIDATESIf a former BOJ executive becomes governor, there is a strong chance one of the deputy governor posts will be filled by top finance ministry bureaucrats such as Shigeaki Okamoto and Yasushi Kinoshita.

The massive buying highlights the increasing difficulty the central bank faces in sustaining its yield control policy, as inflation perks up well above its 2% inflation target. With its heavy-handed intervention drying up bond market liquidity, the BOJ is increasingly relying on a new funds-supply tool to keep the 10-year yield from breaching its 0.50% ceiling. The BOJ's bond buying in January, at 23.69 trillion yen ($182 billion), was the biggest amount on record and exceeded the previous high of 16.2 trillion yen marked in June 2022, central bank data showed. Under yield curve control, the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around 0%. The 10-year bond yield stood at 0.480% on Wednesday, remaining close to the BOJ's 0.5% cap.

☆ Factbox: Key dates to watch out for on BOJ policy, leadership change
▼ + stars: | 2023-01-18 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

The Bank of Japan (BOJ) also awaits a leadership transition as Governor Haruhiko Kuroda's second five-year term ends in April. Below are key dates to watch:BOJ LEADERSHIP RACEPrime Minister Fumio Kishida will hand-pick nominees for the governor and deputy governor posts from a list crafted by his close aides and finance ministry officials. People seen as top candidates for the BOJ governor post include incumbent deputy governor Amamiya, as well as former deputy governors Hiroshi Nakaso and Hirohide Yamaguchi. The subsequent meeting will be held on April 27-28 under a new BOJ leadership. The new BOJ governor will also be busy with international meetings.

☆ Economists say BOJ's Amamiya is top governor candidate, tightening this week unlikely
▼ + stars: | 2023-01-16 | by ( Kantaro Komiya | ) www.reuters.com time to read: +5 min

Of the 24 economists who replied to the Jan 5-12 poll, 16, or 67%, chose Amamiya as the most likely candidate to become the next BOJ governor. Four economists in the poll, or 17%, chose Nakaso, who is seen less dovish than Amamiya, as the most likely candidate. In a September poll that asked the same question, Amamiya and Nakaso received 61% and 33% of economists' votes, respectively. Five analysts expected the unwinding of easing to start in April, at the first BOJ meeting under the new governor. Elsewhere in the poll, 83% of economists said Japanese nominal wages were unlikely to outpace rising consumer prices in 2023.

☆ Ex-BOJ deputy Yamaguchi emerging as next c.bank head contender -Sankei
▼ + stars: | 2022-12-29 | by ( ) www.reuters.com time to read: +2 min

TOKYO, Dec 29 (Reuters) - Former Bank of Japan Deputy Governor Hirohide Yamaguchi, a vocal critic of Governor Haruhiko Kuroda's stimulus programme, is emerging as a strong candidate to become next head of the central bank, the Sankei newspaper reported on Thursday. Yamaguchi had been considered a less likely candidate compared with deputy governor Masayoshi Amamiya and former deputy Hiroshi Nakaso. But Yamaguchi is attracting more attention as a strong candidate as Kishida's administration distances itself from Abenomics, the Sankei said, adding that Kishida's choice of new BOJ governor will become clear as early as next month. A career central banker with deep experience in monetary policy drafting, Yamaguchi served as deputy governor for five years until 2013. Since retiring from the BOJ, Yamaguchi has warned of the rising cost of prolonged easing and criticised Kuroda's stimulus as relying too much on the view that central banks can influence public perception with monetary policy.

☆ As Kuroda bows out, Bank of Japan's rising hawks eye end to unloved yield cap
▼ + stars: | 2022-12-16 | by ( Leika Kihara | ) www.reuters.com time to read: +12 min

PUBLIC DISCONTENTAfter a tumultuous year for the world's third-largest economy, Japan's central bank and its leadership face a critical moment. While ruling out the need to ditch the yield cap now, Takata recently said he saw positive developments in wage growth. "The BOJ must start worrying about the possibility of inflation accelerating more than expected," he told Reuters, adding the BOJ may abandon its yield cap as early as next year. Such a reaction was seen in March when the BOJ was forced to pledge unlimited bond buying to defend its yield cap from speculative market attacks. "That's why the BOJ won't provide advance signals and remove the yield cap in a single step."

☆ Kuroda says he has no desire to be re-appointed BOJ governor
▼ + stars: | 2022-11-10 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

TOKYO, Nov 10 (Reuters) - Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Thursday he had no desire to get re-appointed for another five-year term to head the central bank, after his current one ends in April next year. Personally, I have absolutely no desire to get re-appointed," Kuroda told parliament. The government nominates a candidate for BOJ governor, which needs parliament approval to take effect. The choice of next BOJ governor will be crucial to how quickly the central bank could phase out the current radical stimulus programme deployed by Kuroda. While there is no law prohibiting Kuroda from seeking a third five-year term, few had expected him to be reappointed when his current term ends.

☆ BOJ's dovish deputy Amamiya top candidate as next head: Reuters poll
▼ + stars: | 2022-09-21 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

As Kuroda's right-hand man, he has consistently called for the need to keep monetary policy ultra-loose to ensure Japan makes a sustained exit from deflation. Like Amamiya, Nakaso is considered a safe pair of hands with his expertise on central bank affairs. The BOJ's dovish stance has made it an outlier among a global wave of central banks tightening monetary policy to combat surging inflation. "While Kuroda is at the helm, the BOJ's ultra-loose monetary policy won't change," said Takeshi Minami, chief economist at Norinchukin Research Institute. "But under a new leadership, the bank could reassess its view on the inflation outlook and thinking on monetary policy."

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