The Bank of Japan has reshuffled its board and brought in a new member seen as more keen to end ultra-low interest rates; than his dovish predecessor, potentially tilting the board away from Governor Haruhiko Kuroda’s aggressive monetary easing policy.
They replace Goushi Kataoka, a former economist who was a vocal advocate of aggressive monetary easing, and former commercial banker Hitoshi Suzuki, whose five-year terms ended on July 23.
The reshuffle precedes a change in the BOJ leadership when Kuroda’s second, five-year term ends in April next year. The terms of his two deputies will also expire in March. Takata, a bond market expert, is considered by markets to be more open to dialing back Kuroda’s prolonged and massive stimulus programme. He once wrote in a research note that the BOJ could come under pressure to consider exiting its ultra-loose policy; if the European Central Bank (ECB) follows in the footsteps of the U.S. Federal Reserve in withdrawing monetary stimulus.
The ECB hiked rates for the first time in 11 years, joining a wave of central banks tightening monetary policy. That left the BOJ among the few remaining central banks keeping its money tap wide open.