Japanese Prime Minister Kishida Wants New BOJ Head To Work To End Deflation By Reuters

© . FILE PHOTO: Japanese Prime Minister Fumio Kishida speaks at a press conference in Tokyo, Japan March 3, 2022. REUTERS/Kim Kyung-Hoon/Pool TOKYO () – The next governor of Japan’s central bank should be one who understands the need to cooperate with the government in beating deflation, Prime Minister Fumio Kishida said Friday. Markets look forward to a change of leadership at the Bank of Japan (BOJ) next year, in view of potential changes in massive asset-buying measures and the yield curve, which have failed to push inflation up to the 2% target and sparked criticism for hurting the profits of financial institutions. Kishida will have the power to elect a successor to current BOJ governor Haruhiko Kuroda, whose term ends in April 2023, if his ruling party wins the upper house elections expected this summer. The government of Kishida and the BOJ last November reaffirmed commitments made in a 2013 joint statement for the two sides to work together on economic policy and for the central bank to aim for its 2% price target. . “The government and the BOJ have agreed to work together to fight deflation,” Kishida told parliament on Friday, referring to the reaffirmed joint statement. “We hope the BOJ continues to strive to meet its 2% inflation target in view of economic, price and financial developments,” he said. “The next BOJ governor should be someone who understands this.” The governor’s choice to succeed Kuroda, who is serving a rare second five-year term, will be key to how quickly the bank can reverse Kuroda’s radical monetary experiment. Some analysts say Kishida is likely to move away from the “Abenomics” stimulus policy of his predecessor Shinzo Abe, which relied heavily on monetary easing to get the economy going again. Kishida’s government announced nominees on Tuesday to replace two BOJ policymakers who will retire in July, appointments likely to distract the board from radical easing. Incumbent Vice Governor Masayoshi Amamiya and former Vice Governor Hiroshi Nakaso – both career central bankers – are seen by the markets as strong candidates to be the next head of the BOJ. (This story is adjusted to the day of the week in the first paragraph) Disclaimer: Fusion Media would like to remind you that the data on this website is not necessarily real-time or accurate. All CFDs (Stocks, Indices, Futures) and Forex prices are not provided by exchanges but rather by market makers, and therefore prices may not be accurate and may differ from the actual market price meaning prices are indicative and not suitable for trading purposes . Therefore, Fusion Media does not bear any responsibility for any trading losses that you may incur as a result of using this data. Fusion Media or anyone associated with Fusion Media accepts no liability for any loss or damage resulting from reliance on any information, including data, quotes, charts and buy/sell signals on this website. Be fully informed about the risks and costs associated with trading the financial markets, it is one of the riskiest forms of investment possible.

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