The Bank of Japan on Tuesday nominated Kazuo Ueda, an economist and former member of the Bank of Japan's policy board, as the next central bank governor. The Bank of Japan also nominated Shinichi Uchida (BoJ executive director) and Ryozo Himino (ex-head of the Financial Services Agency) to serve as deputy governors. Ueda will be tasked with examining the monetary policy implemented by Haruhiko Kuroda during his decade of leadership. Investors will seek comments and clues during the nomination hearing regarding how and when he or she will plan to normalize policy. On Tuesday morning, Ueda told reporters that he would answer questions in parliament. 



bank of japan
Bank of Japan

 


Ueda is expected to attend a meeting of the lower and upper houses later this month, where lawmakers will question him about the policy plan he will make. The term of office of the governor and his deputy for the BoJ itself is five years. Kuroda's term ends on April 8, while the terms of the two current deputies will end on March 19. Ueda will be the first postwar BoJ governor with an academic background. Ueda served as a member of the central bank's policy council from 1998 to 2005 after working as a professor at the University of Tokyo. In a Nikkei article published last July, Ueda said that it was too hasty to raise the book rate when inflation exceeded 2%. Because according to him, it will have a negative impact on the economy and inflation which will certainly hinder the realization of the goal of raising interest rates broadly for the long term. 


Japan's core consumer inflation touched 4% in December from a year earlier, hitting a 41-year high due to higher energy and food prices. This figure exceeded the BoJ's price target by 2%. The BoJ in December expanded its target range for long-term yields from 0.25% to 0.5%, but held firm the following month. The central bank expects inflation to slow around the middle of 2023, which will begin in April, with a projected rate of 1.6% for the financial year. Kuroda's final monetary policy meeting will be scheduled for March 9-10. And if Ueda is successfully appointed, then his first meeting with the council will be held on April 27-28.


Update other forex news through the GIC Journal every day to find out the latest updates about the world of forex to crypto. Also trade on GICTrade using an ECN account to enjoy trading with low spreads starting from zero!

Register Here To Get Gold Trading Profits, Become a Profit Opportunity!