How Kazuo Ueda’s Appointment as Japan’s Next Central Bank Governor Could Shape the Future of Japan’s Economy
Quick Summary
Kazuo Ueda, set to become the next governor of the Bank of Japan, is poised to shape Japan’s economic future. With the Japanese yen strengthening 0.2% after the announcement, both houses of Parliament now need to confirm his nomination. Current Governor Haruhiko Kuroda has led a dovish monetary policy for five years, and Bank of America Global Research predicts gradual policy normalization as we advance. Prime Minister Kishida emphasizes the need for Ueda to have “global communication skills” and coordinate with peers. At the same time, Citi notes Mr. Uchida is likely to play a key role in making monetary policy decisions. All indications suggest this new appointment will have major reverberations throughout Japan and its global economy.
Full Story – Japan’s next central bank governor is set to be Kazuo Ueda. Here’s what it means
Bank of America Global Research expects a gradual policy normalization under the central bank’s new leadership instead of an abrupt change. Citi said, “It is highly likely that Mr. Uchida, who has been deeply involved in Haruhiko Kuroda’s easing, will play a pivotal role in making monetary policy decisions.”
Kazuo Ueda is set to become the next governor of the Bank of Japan, succeeding current central bank chief Governor Haruhiko Kuroda.
The Japanese yen strengthened 0.2% Tuesday morning after the announcement of the nomination and last stood at 132.13 against the U.S. dollar.
Both houses of Japan’s parliament now need to approve Ueda’s nomination. Prime Minister Fumio Kishida’s ruling coalition has a majority in both chambers. Parliamentary hearings are likely to take place on Feb. 24, Nikkei reported.
Kishida recently emphasized the need for the next central bank governor to have “global communication skills” and be able to coordinate closely with global peers, Reuters reported, citing his comments in parliament.
Current governor Kuroda was first appointed in March 2013. He has led the central bank’s ultra-dovish monetary policy, including maintaining a negative interest rate since 2016 – even as global peers have been hiking to tackle inflation. His current five-year term will end on April 8.
Bank of America Global Research expects gradual policy normalization under the central bank’s new leadership instead of an abrupt change, according to the firm’s economists led by Izumi…
