Kuroda Becomes Longest-Serving BOJ Head

Politics

Tokyo, Sept. 29 (Jiji Press)--Haruhiko Kuroda became the longest-serving Bank of Japan governor on Wednesday, amid lingering questions about the effects of the protracted monetary easing of a "different dimension" he has pushed to reflate the economy.

Kuroda's term as head of the Japanese central bank reached 3,116 days as of the same day, surpassing the previous record marked by Hisato Ichimada, who earned the nickname "the pope" for his work to curb inflation after World War II during his tenure between June 1946 and December 1954.

As a driver of the Abenomics policy mix launched by former Prime Minister Shinzo Abe to get the Japanese economy out of deflation, Kuroda pushed ahead with massive monetary easing. But the BOJ's 2 pct inflation target has yet to be achieved, leaving a difficult task for Kuroda during his remaining 18 months in office.

Soon after taking office in March 2013 under the second Abe administration, Kuroda introduced "monetary easing of a different dimension" in order to achieve the price stability target. His policy was designed to double within two years the monetary base, or the combined balance of currency in circulation and commercial financial institutions' current account deposits at the central bank, as well as the BOJ's holdings of Japanese government bonds.

Dubbed the "Kuroda bazooka" on financial markets, the drastic monetary easing measures contributed to weakening the yen against major currencies and pushing up Tokyo stock prices.

[Copyright The Jiji Press, Ltd.]

Jiji Press