Kuroda Nominated to Lead BOJ for Another Term

Japan’s government has decided to nominate Haruhiko Kuroda to serve as governor of the central bank for another term when his current one expires in April, according to media reports, a sign the country’s ultra-loose monetary policy will remain in place.

The reappointment would heighten the chances the BOJ will stick to its policy of capping borrowing costs around zero, offering some relief to investors jittery about signs that some major central banks may dial back their crisis-mode policies earlier than expected.

The nomination needs approval by both houses of parliament, a near certainty as premier Shinzo Abe’s ruling coalition holds comfortable majorities in the lower and upper houses of the Diet.

“All in all it is a good sign,” said Stefan Gerlach, chief economist at Swiss bank EFG and former Deputy Governor of the Central Bank of Ireland.

“It means there is policy continuity and obviously it is good to have someone who is respected by the government enough to be reappointed.”

Japan’s Kyodo news agency reported on Friday Abe would likely reappoint Kuroda for a rare second term, a choice widely expected by markets.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza