One of Japanese Prime Minister Fumio Kishida’s closest aides said that Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya and former deputy governor Hiroshi Nakaso are among the potential candidates to replace BOJ Governor Haruhiko Kuroda after he steps down in April.
“They are both talented, they both have knowledge of the history of monetary policy, but I don’t think they are the only candidates,” Japanese Deputy Chief Cabinet Secretary Seiji Kihara said in an interview in English with Bloomberg News last week.
Kihara said there was no need to speed up the nomination process, adding that the government might try to reach a new accord with the central bank.
Photo: Bloomberg
He also did not rule out the possibility of the BOJ achieving its sustainable inflation goal next year.
The selection of the next central bank head is a key decision for Kishida next year and might become one of the most important calls of his premiership as he struggles to stabilize a plunge in support, with a scandal still simmering over his Liberal Democratic Party’s links to a fringe church.
The choice is also an important focus for investors as they weigh how the policy direction of a post-Kuroda BOJ would affect markets.
“Possible candidates should have knowledge of monetary policy and also fiscal policy, as well as the ability to deal with politics,” Kihara said. “There are not many people who can work as BOJ governor. It’s not two or three, but I don’t think it is 20 or 30.”
Amamiya and Nakaso have topped the list of most suitable candidates to lead the BOJ in Bloomberg surveys of economists.
The October poll also showed that some BOJ watchers expected nominations to come as early as this month, although the government has typically announced its recommendations in February.
While a deputy government spokesperson said that there was a possibility of a new joint statement between the BOJ and the government, he did not elaborate on the likely details.
Kuroda has long cited the joint statement issued by the central bank and the government in January 2013 as justification for his massive easing program to generate stable 2 percent inflation target.
“We may have a chance to make a new accord, although I can’t say if the content will be different,” Kihara said.
Raising wages is the top priority of Kishida’s government, with pay gains essential for securing the lasting stable inflation the BOJ is seeking, he said, adding that the central bank might or might not achieve that level of sustainable inflation next year.
That suggests the government is not ruling out a chance of the central bank starting its process for normalization next year.
Kihara’s remarks are likely to fuel further speculation over possible changes at the BOJ following a board member’s recent call for a policy review of the central bank’s policy framework and its inflation target at the appropriate time.
Two deputy governors are also ending their term just weeks before Kuroda steps down on April 8.
One key area of interest for BOJ watchers is whether the next leadership will include a woman for the first time in its 140-year history, given the nation’s lack of progress in promoting diversity.
The BOJ ranked 142nd among central banks on an index of gender equality this year.
“From a gender perspective, generally speaking, an increase in the number of women on the policy board of BOJ is a good idea,” Kihara said.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
Catastrophic computer outages caused by a software update from one company have once again exposed the dangers of global technological dependence on a handful of players, experts said on Friday. A flawed update sent out by the little-known security firm CrowdStrike Holdings Inc brought airlines, TV stations and myriad other aspects of daily life to a standstill. The outages affected companies or individuals that use CrowdStrike on the Microsoft Inc’s Windows platform. When they applied the update, the incompatible software crashed computers into a frozen state known as the “blue screen of death.” “Today CrowdStrike has become a household name, but not in