New chief on horizon for Bank of Japan
(05 March 2013 – Japan) Haruhiko Kuroda, an experienced finance veteran who has announced his resignation as head of the Asian Development Bank, is widely expected to be confirmed by parliament as Japan's top central banker in the coming weeks.
He has vowed to do "everything possible" to reverse years of growth-sapping deflation and blasted former Bank of Japan (BoJ) management for failing to fix the problem.
The 68-year-old has long criticised the central bank for not doing enough to lift the world's third-largest economy and is likely to lead a fresh drive for more spending and aggressive monetary easing.
'I want to make it clear that we will do everything possible to get rid of deflation,' Kuroda told a parliamentary committee, according to Jiji Press.
The country's Prime Minister Shinzo Abe, whose Liberal Democratic Party swept December elections, has vowed to stoke the economy with big spending and aggressive monetary easing.
That put him on a collision course with outgoing BoJ head Masaaki Shirakawa, who is stepping down on 19 March, three weeks before the end of his term, after he and Japan's new leader sparred on policy matters.
Under increasing pressure from Abe's administration, the central bank in January announced an unlimited easing program to start from next year and the adoption of a two-percent inflation target aimed at reversing deflation.
Kuroda applauded the new inflation target, seen as more explicit than the bank's previous 'goal' to raise prices.
But he said the BoJ's Y101 trillion (A$1.06 trillion) asset-buying programme did not go far enough.
The 68-year-old has long criticised the central bank for not doing enough to lift the world's third-largest economy and is likely to lead a fresh drive for more spending and aggressive monetary easing.
'I want to make it clear that we will do everything possible to get rid of deflation,' Kuroda told a parliamentary committee, according to Jiji Press.
The country's Prime Minister Shinzo Abe, whose Liberal Democratic Party swept December elections, has vowed to stoke the economy with big spending and aggressive monetary easing.
That put him on a collision course with outgoing BoJ head Masaaki Shirakawa, who is stepping down on 19 March, three weeks before the end of his term, after he and Japan's new leader sparred on policy matters.
Under increasing pressure from Abe's administration, the central bank in January announced an unlimited easing program to start from next year and the adoption of a two-percent inflation target aimed at reversing deflation.
Kuroda applauded the new inflation target, seen as more explicit than the bank's previous 'goal' to raise prices.
But he said the BoJ's Y101 trillion (A$1.06 trillion) asset-buying programme did not go far enough.
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