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Haruhiko Kuroda the Bank of Japan

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On the 7th of March, the Bank of Japan informed that it decided to keep monetary policy intact, yet the central bank upgraded assessments of the country’s economy. Keeping monetary decision intact was widely anticipated as the Bank of Japan has been living in anticipation of new leadership which is believed to introduce radical steps to end deflation. Masaaki Shirakawa, the outgoing governor of the BOJ, rejected suggestions for more drastic easing measures from two board members, thereby leaving space for new governor’s decisions.

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After all, Japan’s Prime Minister Shinzo Abe has got it made: he is to get rid of current BOJ Governor Shirakawa. The nomination of Haruhiko Kuroda as the next governor of the Bank of Japan is expected to bring basic and crucial changes in the monetary policy. The Shinzo Abe’s choice has raised the possibility of further monetary stimulus as Haruhiko Kuroda is known as the zealous supporter of more active monetary easing.

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