Japan Kishida vows to debate roles of government and BOJ with new central bank governor
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©Reuters. Japanese Prime Minister Fumio Kishida addresses during a news conference at the Prime Minister’s official residence in Tokyo, Japan October 14, 2021. Eugene Hoshiko/Pool via REUTERS
By Leika Kihara
TOKYO (Reuters) – Japanese Prime Minister Fumio Kishida said on Sunday the government and central bank must discuss their relationship in directing economic policy when a new Bank of Japan (BOJ) governor is elected in April.
When asked what kind of person he would choose as the next BOJ governor, Kishida said it will be someone “best suited for the job” when incumbent Haruhiko Kuroda’s term ends in April.
“The government and the BOJ must work closely together, but also each play their own role” to achieve price stability and higher wage growth, Kishida said on a TV program.
“Under the new BOJ governor, we need to discuss the relationship between the government and the BOJ,” said Kishida, who has the power to choose the next central bank governor.
Markets are awash with speculation that the BOJ may take further steps to phase out Kuroda’s massive stimulus by adjusting its yield control policy under a new central bank governor.
“In directing monetary policy, policymakers need to keep the outlook for the economy in mind. There needs to be careful communication and dialogue with markets,” Kishida said when asked whether the BOJ needed to adjust its ultra-loose policies.