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Japan’s lower house of parliament on Thursday approved the government’s nominees for next central bank governor and deputy governors, signing off on a new leadership that will be tasked with steering a smooth exit from ultra-loose monetary policy.
The upper house will vote on the nominations on Friday. Approval by the two chambers has been seen as a done deal as the ruling coalition holds majority seats in both houses.
With the approval, government nominee Kazuo Ueda will officially succeed incumbent BOJ Governor Haruhiko Kuroda whose second, five-year term ends on April 8.
The two deputy governor nominees, career central banker Shinichi Ueda and former banking regulator head Ryozo Himino, will take office from March 20 – succeeding Masayoshi Amamiya and Masazumi Wakatabe.
Ueda will chair his first policy meeting on April 27-28, when the board will produce closely-watched, fresh quarterly growth and price forecasts extending through fiscal 2025.
With inflation exceeding the BOJ’s target, Ueda faces the challenge of phasing out the bank’s controversial bond yield control policy, which has drawn public criticism for distorting market functions and crushing banks’ margins.
