Japan Lower House Approves Kuroda as BoJ Governor

The House of Representatives on Thursday approved the nomination of Asian Development Bank President Haruhiko Kuroda for the post of Bank of Japan governor, paving the way for the launch of the new BOJ leadership later this month after voting Friday in the opposition-controlled upper house.

The government’s selection of Kuroda, an advocate of bold monetary easing, reflects Prime Minister Shinzo Abe’s desire to pursue his aggressive monetary policy to fight deflation.

The lower house, which the ruling coalition led by Abe’s Liberal Democratic Party dominates, also voted for the two deputy governor nominees — Gakushuin University professor Kikuo Iwata and BOJ Executive Director Hiroshi Nakaso.

The BOJ’s new leadership is set to take over next Wednesday after current Governor Masaaki Shirakawa steps down on Tuesday, when his two deputies’ five-year terms end, rather than when his own term expires on April 8.

The ongoing Diet process will only allow Kuroda to serve the remainder of Shirakawa’s term. Kuroda, who will leave the ADB on Monday, will have to undergo another Diet confirmation process in order to continue at the bank’s helm for a five-year term.

BOJ leadership nominees have to be approved by both chambers of parliament. The ruling coalition lacks a majority in the upper house.

via Mainichi

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