Wednesday, 27th February 2013
In General Japan News,
BOJ receives support for monetary easing policy
The Bank of Japan has received some welcome support over its monetary easing policy in the form of Ben Bernanke, the Federal Reserve chairman.
The tactic is aimed at helping to combat the country's deflation which has been an economic concern for some time.
News agency Reuters recently reported that the Japanese government was likely to nominate Haruhiko Kuroda, president of the Asian Development Bank, as its upcoming central bank governor.
The move is deemed significant as Mr Kuroda is thought to be a strong proponent of aggressive monetary easing.
"Kuroda's nomination won't change the course that has been dictated by Abe in recent months - that is aggressive monetary policy, but perhaps thanks to the inclusion of Iwata the market will expect more eye-catching bold easing measures," Masamichi Adachi, senior economist at JPMorgan Securities in Tokyo, was quoted by Reuters as saying.
Before being elected, Prime Minister Shinzo Abe called for "unlimited" monetary policy easing in a bid to beat deflation.
Related news stories:
Prime Minister Abe calls BOJ 2% inflation target 'epoch making' (22nd January 2013)
BOJ 'could enjoy more independence' under the Democrats (25th August 2009)