![]() "If we move too suddenly from Kuroda's path, it will throw financial markets into chaos. Kishida has spent weeks pondering who would be best suited to take the helm of a central bank that has come under the spotlight for its persistently dovish stance despite the nation's headline inflation topping its 2 percent target in recent months.įor Kishida, who has called for wealth redistribution to create a "new form of capitalism," maintaining the right balance with former Prime Minister Shinzo Abe's signature policies has become a crucial test. Ueda, former BOJ Policy Board member, is being eyed as the central bank's next governor, a source familiar with the matter said Feb. Haruhiko Kuroda (L) and Kazuo Ueda (R) attend a symposium on May 20, 2016, in Sendai, Miyagi Prefecture. "It came out of consideration for his party lawmakers so he won't get criticism," a senior member of Kishida's Liberal Democratic Party said. A sense of calm later returned after Ueda said the current monetary easing should continue for now. dollar and Japanese government bond yields surging in a knee-jerk reaction. The news on Friday that Ueda, 71, will likely be nominated as the next BOJ governor stunned financial markets, sending the yen sharply higher against the U.S. Kishida has been caught in a bind between financial markets anticipating a pivot by the BOJ to a tighter monetary policy and some quarters of ruling party lawmakers who are urging him - directly or indirectly - to stick with the "Abenomics" economy-boosting program that has become synonymous with monetary easing. The choice of former Bank of Japan board member Kazuo Ueda for the next central bank governor is a well-calibrated decision by Prime Minister Fumio Kishida at one of the biggest make-or-break moments of his time in office.
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