Bank of Japan’s Kuroda nominated for 2nd term

Tstart the world’s number-three economy.

Kuroda’s nomination was among - those submitted to the parliament tion, Kuroda once famously inin a document seen by reporters, voked the spirit of Peter Pan, the and had been widely expected. boy who never grew up.

“I trust that many of you are fasteer the former economic powermiliar with the story of Peter Pan, house out of a dangerous cycle of in which it says, ‘ the moment you falling prices, Kuroda has guided the key monetary plank of the cease forever to be able to do it’,” prime minister’s vaunted “Abenhe said in a 2015 speech about omics” economic policy. monetary policy.

Now 73, the ex-president of the Asian Development Bank (ADB) is attitude and conviction. Indeed, on course to become the longesteach time central banks have been serving Bank of Japan (BoJ) govconfronted with a wide range of ernor if he completes his second problems, they have overcome the problems by conceiving new

Kuroda took the helm in March solutions,” he said. 2013 with a mandate to deploy what was called a monetary “ba - bund Japanese economy.

He has overseen a policy of ultra-aggressive monetary easing, adopting in January 2016 the BoJ’s - fectively charging lenders to park their cash at the central bank.

The BoJ has also pledged to keep the yield on 10-year government many as necessary.

A perennial optimist in the

‘Some distance to go’

However, it takes more than a bull Kuroda has failed in his mission was 0.9 percent in December.

But he can point to more success recently on the GDP front, with Japan currently enjoying its longest unbroken spell of quarterly growth since the bubble days of the late 1980s.

Kuroda must still win parliament approval and faces hearings as soon as next week.

from some opposition lawmakers, who say the government’s massive bond purchases have left the country vulnerable, and that the BoJ’s negative interest rate policy has hurt banks.

monetary easing has pushed down the value of the yen, making the recovery too export-led.

- tionary shoots beginning to spring forth and the economy picking up, Kuroda’s greatest future challenge will be exiting the easing policy.

For now, Kuroda has pledged to stay the course.

gradually expanding but on the other hand price movements are weak,” he told parliament on Friday, shortly before his nomination was announced.

distance to the two percent pricestabilisation target, it’s not the time ... for an exit from government bond-buying.”

“The Bank of Japan needs patiently to continue the current powerful monetary easing,” he added.

‘Stability over volatility’

Economists said the government was sticking with a safe pair of hands while other global central banks weigh how to move safely away from ultra-loose monetary policy crafted from the ruins of the subprime mortgage crisis.

His reappointment “implies an emphasis on ‘continuity’ over ‘change’ in policy conduct ... and ‘stability’ over ‘volatility’ in the financial markets,” Tetsufumi said in a report.

Tobias Harris, from the Washington-based Teneo Intelligence, told AFP: “Appointing a new central banker would introduce new uncertainty into the markets at a time when volatility is increasing due to monetary policy change in the US.”

The yen edged slightly higher against the dollar, as traders voiced relief at the move.

Kuroda has long been a man for a tight spot.

During the late 1990s Asian currency crisis, he was instrumental in drafting the so-called for struggling southeast Asian economies.

Kuroda, who holds degrees from the University of Tokyo and ministry and took the top job at the Manila-based ADB in 2005.