Many expect BOJ head Kuroda to stay: Jiji poll

October 7, 2017

TOKYO- A majority of financial market and economic pundits expect Bank of Japan Governor Haruhiko Kuroda to be reappointed when his current term ends on April 8, 2018, a Jiji Press survey has found.

But only 30 percent of all respondents said Kuroda is a good choice for next head of the central bank, which remains unable to hit its 2 percent inflation target after more than four years of unconventional monetary policy measures.

Jiji Press conducted the email-based survey last month, receiving responses from 50 experts.

Of the total respondents, 28 said Kuroda will be reappointed. "He has strong trust from Prime Minister (Shinzo) Abe," said Tsuyoshi Ueno of the NLI Research Institute.

In Japan, the prime minister nominates the BOJ governor for confirmation by the Diet, the country's parliament.

Meanwhile, those viewing Kuroda as a good pick for the next BOJ head numbered 15. The low figure included those who chose him by a process of elimination.

"He is responsible for the failure of bold monetary easing measures," said Shinichiro Kobayashi of Mitsubishi UFJ Research and Consulting Co.

Ten experts, the second-biggest number, forecast the promotion of Deputy Governor Hiroshi Nakaso to governor.

Nakaso is "well-versed in practical operations at the BOJ and has a strong international reputation," a major brokerage house official said.

Many respondents see expertise in practical operations as important, as the BOJ may start unwinding its current unconventional monetary policy measures, including massive outright purchases of Japanese government bonds, during the five-year term of the next governor.

Only two experts forecast the promotion of Executive Director Masayoshi Amamiya to governor. But he drew nine votes as a good successor to Kuroda, matching the number attained by Nakaso.

Four respondents forecast Japanese Ambassador to Switzerland Etsuro Honda will succeed Kuroda, while three predicted Columbia University Prof. Takatoshi Ito. Honda, close to Abe, advocates drastic monetary policy measures to combat deflation, while Ito used to work under Kuroda at the Finance Ministry. Jiji Press