Kuroda was bold in his statements as head of the Asian Development Bank where he went on the record that the Bank of Japan could meet its 2 percent inflation target in 2 years.
Japan’s prime minister is poised to nominate an advocate of aggressive monetary easing to be the nation’s next central banker, a move that will likely further weaken the yen while providing a boost to stocks.
After weeks of speculation, multiple Japanese media reports indicate that Prime Minister Shinzo Abe is preparing to select Asian Development Bank President Haruhiko Kuroda as the BoJ’s next governor.
Kuroda is seen as a likely candidate due to his experience in international finance, and monetary prescriptions that largely mirror those of Abe.
Abe based his election campaign last year on a commitment to take radical steps to end years of deflation, combining promises of looser monetary policy with pledges of fiscal stimulus.
The Japanese yen has already weakened significantly in response to policy changes, falling almost 21% against the U.S. dollar since the beginning of October and driving up the stock market. It has also lost ground against the euro and some Asian peers, raising concerns that Japan may be engaged in a race to the bottom to promote exports.
via CNN Money
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