TOKYO : For Prime Minister Fumio Kishida, Japan's next central bank chief had to symbolise a departure from the unconventional policies of his predecessor Shinzo Abe - but without angering pro-growth lawmakers of Abe's powerful political faction.The tricky task of steering the Bank of Japan (BOJ) out of y
TOKYO : For Prime Minister Fumio Kishida, Japan's next central bank chief had to symbolise a departure from the unconventional policies of his predecessor Shinzo Abe - but without angering pro-growth lawmakers of Abe's powerful political faction.
But the idea found traction in Kishida's administration, particularly as attempts to convince incumbent deputy governor Masayoshi Amamiya, considered the top contender for the job, failed. The bank's preferred choices were incumbent deputy governor Amamiya, as well as former deputies Hiroshi Nakaso and Hirohide Yamaguchi, given their deep knowledge on monetary policy.
A commercial bank executive who met him late last year recalled how Amamiya, when asked, flatly denied the chance of becoming governor."It struck me how he very strongly ruled out the possibility," the executive said. That was too risky for Kishida, whose own faction is a minority and relies on support from more powerful groups within the LDP.
Most of them spoke on condition of anonymity as they were not authorised to speak publicly, or declined to comment on record due to the sensitivity of the matter. Matsuno said he hoped the BOJ works closely with the government and guides monetary policy flexibly, when asked whether Ueda's appointment could lead to a retreat from Abenomics.Thanks in part to Amamiya's recommendation, Ueda remained on a short list and eventually became the top choice in a process that was disclosed to only a handful of people.
The fact Ueda, who holds a PhD from the Massachusetts Institute of Technology and studied under prominent central banker Stanley Fischer, kept a low political profile and avoided being branded as someone in favour or against Abenomics, served him well. Political commentator Atsuo Ito sees Kishida's decision as symbolic of the way his administration gives due consideration to what lawmakers of Abe's pro-growth faction think.NEW POWER DYNAMICS
"He's something of a legend in Japanese central banking," said a BOJ official of Ueda."He stood out as someone special among the many members who served at its board."
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