Bank of Japan Board Member Profiles

Reuter has published a special report on the Bank of Japan to go alongside the updated bios of its board members. Here is the new Governor profile:

HARUHIKO KURODA, 68, GOVERNOR – He was plucked from the Asian Development Bank by Prime Minister Shinzo Abe to deliver radical reflationary policies at the Bank of Japan. Took office in March. Kuroda had long criticized the BOJ for doing too little, too late to end deflation and boost the Japanese economy. A voracious reader of books ranging from philosophy to detective novels.

Reuters devotes its special report on the Bank of Japan to the bold start to Kuroda’s governorship:

Only weeks before Kuroda joined, the board had voted 8 to 1 against a plan for bold monetary easing. Now, vocally backed by a new prime minister, Kuroda knew the arithmetic had moved in his favor. He was joining the board with two new deputies. They plus two sympathetic veterans on the board gave the new governor a 5-4 edge. But Kuroda wanted unanimous support.

His recipe was radical: double Japan’s money supply in two years, and promise to ignite 2 percent inflation in two years, reversing nearly two decades of falling prices. Investors doubted the cautious BOJ had the stomach; Kuroda calculated that a 9-0 victory would show the BOJ now meant business.

In a two-week whirlwind of meetings, according to people with knowledge of those deliberations, Kuroda won over the four holdouts on the policy board for the biggest attack on stagnation by any central bank in recent years. The campaign kicked off at a secret weekend retreat in downtown Tokyo, inside a former BOJ dormitory.

On April 4, the board gave him his 9-0 win. The degree to which Kuroda delivered on his promise, and the extent of his support, stunned financial markets. The impact was exactly according to script: The yen went into a precipitous slide, Tokyo stocks extended a five-month rally, and government-bond yields fell to record lows.

To read the special report click here and here you can read the BoJ board member bios

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