Haruhiko Kuroda’s reappointment as BOJ governor needs approval by Japan’s parliament, a near certainty as premier Shinzo Abe’s ruling coalition holds comfortable majority in both the houses of the Diet. Photo: Reuters
Haruhiko Kuroda’s reappointment as BOJ governor needs approval by Japan’s parliament, a near certainty as premier Shinzo Abe’s ruling coalition holds comfortable majority in both the houses of the Diet. Photo: Reuters

Japan government to nominate Kuroda for another term as BOJ governor

Haruhiko Kuroda's reappointment, widely expected by financial markets, will heighten the chances the BOJ will stick to its policy of capping borrowing costs around zero

Tokyo: Japan’s government has decided to nominate Haruhiko Kuroda as governor of the central bank for another term when his current one expires in April, a person briefed on the matter said on Saturday, a sign the country’s ultra-loose monetary policy will remain in place.

The reappointment, widely expected by financial markets and reported late on Friday by Japanese media, will heighten the chances the BOJ will stick to its policy of capping borrowing costs around zero. This offers some relief to investors jittery about signs that some major central banks may dial back their crisis-mode policies earlier than expected.

Kuroda’s nomination needs approval by both houses of parliament, a near certainty as premier Shinzo Abe’s ruling coalition holds comfortable majorities in the lower and upper houses of the Diet. Reuters.

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