by Daniel Leussink and Leika Kihara
TOKYO (Reuters) – The Japanese government has sounded out Bank of Japan (BoJ) deputy governor Masayoshi Amamiya to succeed Haruhiko Kuroda as central bank governor, the Nikkei business daily reported on Monday, citing sources. within the government and the ruling party.
However, no final decision appears to have been made at this stage, with Prime Minister Fumio Kishida telling the press that he would continue to consider the best candidate for the post.
The next BoJ governor will face pressure to normalize central bank policy, whose ultra-accommodative bias is attracting increasing criticism and runs counter to the strategy of other major institutes monetary issue in the world.
Central banker for much of his career, Masayoshi Amamiya participated in the development of the many monetary easing instruments used by the BoJ and is perceived by the markets as one of the favorites to head the Japanese central bank.
Presented by analysts as a pragmatic and cautious leader, Masayoshi Amamiya should not make sudden changes in BoJ policy if he is appointed governor.
For Stefan Angrick, economist at Moody’s Analytics, an appointment of Masayoshi Amamiya as BoJ governor would signal political continuity.
“A BoJ under his leadership would not rush into a tightening,” he said. “The control of the yield curve would be reviewed, but a real take-off in rates would remain dependent on wage growth and the increase in demand”.
The candidacy retained by the government will probably be presented to Parliament next week and will have to be ratified by both chambers, which seems a formality since the ruling coalition has a solid majority.
The Nikkei article does not specify whether Masayoshi Amamiya has accepted the government’s proposal. Asked about the subject by journalists, the latter refrained from commenting, according to the Jiji news agency.
Deputy Chief Cabinet Secretary Yoshihiko Isozaki said at a press conference that the Nikkei information was inaccurate.
The five-year term of current BoJ Governor Haruhiko Kuroda ends on April 8.
On the markets, the Japanese currency accused Monday a new low since January 12, trading at 132.6 yen for a dollar, after the publication of the Nikkei.
(Report Daniel Leussink and Leika Kihara; with Tetsushi Kajimoto, Kantaro Komiya and KentaroSugiyama; French version Claude Chendjou, edited by Blandine Hénault)
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