Japan’s government reappointed Kuroda as BOJ chief for another term

Vastavam web: Japan’s government on Friday reappointed Bank of Japan Governor Haruhiko Kuroda for another term and chose an advocate of bolder monetary easing as one of his deputies, a sign the central bank will be in no rush to dial back its massive stimulus program.The selection of the new BOJ leadership comes at a crucial time for Japanese and global markets, which have been rattled in recent weeks on expectations major central banks will whittle down their crisis-mode stimulus.

In a widely expected move, the government nominated Kuroda to serve another five-year term when the current one ends in April, a sign of premier Shinzo Abe’s confidence over the governor’s efforts to pull Japan’s economy out of stagnation.The other deputy governor post went to BOJ Executive Director Masayoshi Amamiya, a veteran central banker known for masterminding various monetary policy steps.The choice of Wakatabe, a professor at Waseda University, could complicate Kuroda’s task of engineering a slow but steady exit from the BOJ’s radical monetary stimulus.While Kuroda has pledged to maintain the BOJ’s ultra-easy policy, he has refuted arguments that the stimulus program needs to be expanded and has signaled the possibility of raising interest rates if inflation prospects brighten.The nominations need approval by both houses of parliament, which is a near certainty as Abe’s ruling coalition has a comfortable majority.