BOJ Governor Kazuo Ueda to Take Over
Haruhiko Kuroda’s term as governor of the Bank of Japan is set to expire in April 2023, and Kazuo Ueda is anticipated to be named as his replacement. Ueda is anticipated to contribute his knowledge to the central bank because he was a former member of the BOJ board and has a PhD in economics from MIT.
Position of Ueda on Monetary Policy
Tetsuya Inoue, a senior researcher at Nomura Research Institute and a former staff member of Ueda, predicts that the incoming governor of the BOJ would likely approach monetary policy cautiously. Instead of hurrying to change the central bank’s ultra-loose policy, Ueda is anticipated to take economic data as a guide. According to Inoue, Ueda conducts policy talks based on facts and data and uses economic theories as instruments to do so.
Contributions of Ueda to BOJ Policy
Ueda’s tenure as a board member from 1998 to 2005 was crucial to the BOJ’s monetary policy. In order to battle deflation and a local banking crisis, he contributed to the introduction of new monetary easing instruments in 1999 and assisted the central bank in the introduction of forward guidance. According to Inoue, if Ueda is appointed governor, he may implement a new monetary policy framework that might include a revised version of forward guidance.
stressing the stability of the financial system
In a book he wrote in 2005, Ueda emphasized his worries about the effects of banking sector issues on the economy. If Ueda is elected governor, Inoue predicts that he would prioritize preserving the stability of the financial system.