Reflationist Wakatabe Seen as Key in BOJ Monetary Policy (News)


Tokyo, Feb. 21 (Jiji Press)—Market attention is focusing on whether Waseda University Professor Wakatabe Masazumi, known as a reflationist and candidate for Bank of Japan deputy governor, will continue to call on the central bank to take additional monetary easing steps after assuming the key BOJ post.

Early next month, both chambers of the Diet, Japan's parliament, are expected to invite Wakatabe, who seeks to beat deflation through massive monetary stimulus, to ask about his views on the economic and price conditions, and the BOJ's monetary policy management.

The House of Representatives, the lower chamber, and the House of Councillors, the upper chamber, will also conduct similar hearings with BOJ Executive Director Amamiya Masayoshi, the other candidate for deputy governor, and BOJ Governor Kuroda Haruhiko, who has been nominated for reappointment as the top Japanese central banker.

The government and the Liberal Democratic Party-led ruling bloc hope to obtain Diet approval for the appointments of Wakatabe and Amamiya by March 19, when the five-year terms of the current two BOJ deputy governors--Iwata Kikuo and Nakaso Hiroshi--are set to expire. Kuroda's current term is set to end on April 8.

The BOJ's governor and two deputy governors are among the nine members of its Policy Board, which makes the central bank's monetary policy decisions.

[Copyright The Jiji Press, Ltd.]

Bank of Japan Jiji Press monetary policy Kuroda Haruhiko