According to the latest report of Kyodo News Service, Shinzo Abe, the Prime Minister of Japan is all set to nominate Haruhiko Kuroda as the next Governor of Bank of Japan. Kuroda, who is currently working as the President of the Asian Development Bank, incidentally worked as the Currency Chief of Japan between 1999 and 2003. Other newspapers such as Asahi and Sankei also published reports on possibility of Kuroda being appointed as the next Governor. The other names which have been doing the rounds for the position are: Kikuo Iwata, the Professor of Gakushuin University, Takatoshi Ito, the Professor of Tokyo University, Kazumasa Iwata and Toshiro Muto; Kazumasa and Toshiro – both are former Deputy Governors of the Bank of Japan.
According to the Kyodo report, Kuroda will be presented by Abe right in the middle of this week. Many investors feel that Kuroda, currently 68, will help Abe to follow through on his quest to counter more than a decade long deflation of Japan, thereby spurring a revival of the country’s economy. Abe’s policies, incidentally, have already played instrumental role in declining Yen to record low and rally in the stock prices.
The current Governor of Bank of Japan, Masaaki Shirakawa will retire from his position in next month and two Deputy Governors will follow him as well. Kuroda, incidentally, stated that the Central Bank of Japan has well enough room to take the loosening policy further and certain additional measures right in 2013 could be justified. Economists feel that thus Kuroda thus has already signaled that if he indeed becomes the next Governor, he will embrace stronger stimulus.
The Departmental Head of Bank of Tokyo-Mitsubishi UFJ’s Global Markets Research Department, Derek Halpenny, stated that Kuroda became obvious choice as Government feels that he has potential to explain Japan’s economic strategy in the G20 or G7 meetings. Kuroda has already explained what Japan should do in economic terms over the next few months and this made him a strong contender.
The nominee of Government has to be confirmed by the Parliament and the oppositions may play an important role in the same. Your Party, an opposition, incidentally stated that Kuroda is not the best person to fit in the shoes of Masaaki Shirakawa and what happens in the 3rd largest economy in the world, is now to be seen.