Prime Minister Fumio Kishida said on January 22 that Governor Central Bank of Japan (BoJ) Haruhiko Kuroda will leave office following his term ends in April 2022, raising the possibility that the government will submit to parliament to choose a successor next month.
Information regarding the new BoJ Governor was given by Mr. Kishida on a television program.
Mr. Kishida said that following deciding on personnel issues, the government will present the option to replace Mr. Kuroda before the National Assembly.
[Thị trường tài chính quan ngại trước thềm cuộc họp chính sách của BoJ]
On the question of the possibility of submitting a personnel proposal in February, Mr. Kishida said that considering the working schedule of the National Assembly, it might happen.
The Japanese government will also seek approval for new Deputy Governor positions, who are likely to be appointed at the same time.
Mr. Kuroda has held the position of head of the BoJ since 2013. As planned, he will end his current term on April 8 and the new Governor will take office a day later.
According to sources familiar with the matter, current Deputy Governor Masayoshi Amamiya and former Deputy Governor Hiroshi Nakaso have been selected as candidates to replace Mr. Kuroda.
Observers say that the new governor will face a number of challenges, including normalizing the BOJ’s monetary policy through the end of the period of large-scale monetary easing.
On the possibility of revising the decades-old agreement between the government and BoJMr. Kishida said this issue will be discussed following determining who will become the new Governor.
Under the agreement, the BoJ committed to achieve the 2% inflation target as soon as possible.
Analysts said the revision would include a redefinition of the medium- and long-term target, as a step toward normalizing the BoJ’s monetary policy.
Thuy (VNA/Vietnam+)
