Investors say Kazuo Ueda's appointment as the Bank of Japan's new chief may indicate how soon it will shift away from extremely low interest rates — a transition that could have huge ramifications for global financial markets.
Mr Kishida's administration also wanted someone who would signal a departure from Mr Kuroda's monetary experiment that was a key part of his predecessor's "Abenomics" stimulus policies, and became deeply unpopular with the public for failing to broadly distribute wealth.
"The prime minister probably wants a fresh face. But he also needs to avoid giving the impression that there will be a big change to ultra-loose policy," ruling party heavyweight Akira Amari told Reuters days before news of Mr Ueda's choice broke. Mr Matsuno said he hoped the BOJ worked closely with the government and guided monetary policy flexibly, when asked whether Mr Ueda's appointment could lead to a retreat from Mr Abenomics.Thanks in part to Mr Amamiya's recommendation, Mr Ueda remained on a shortlist and eventually became the top choice in a process that was disclosed to only a handful of people.
The fact Mr Ueda, who holds a PhD from the Massachusetts Institute of Technology and studied under prominent central banker Stanley Fischer, kept a low political profile and avoided being branded as someone in favour or against Abenomics, served him well. Political commentator Atsuo Ito sees Mr Kishida's decision as symbolic of the way his administration gives due consideration to what politicians in Mr Abe's pro-growth faction think.Haruhiko Kuroda's second term as head of the BOJ ends in April.Mr Kishida's choice was welcomed by many BOJ policymakers, as Mr Ueda was no stranger to the institution and a quiet cheerleader of its pre-Kuroda conventional policies.
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