Welcome to Issues in Japan.
This time, I'd like to introduce some rumors in the political world regarding the departure of the Bank of Japan governor, along with article contents of Nikkan Gendai DIGITAL posted on February 09.
The title is:
The Bank of Japan is on the verge of ousting Governor Kuroda.
Who will put a bell around Governor Kuroda's neck?
The term of office of Bank of Japan Governor Haruhiko Kuroda, 77, expires next April, but is there any talk in the Prime Minister's Office to replace him before it expires?
It's true, it's smoldering.
Is it part of the "de-Shinzo Abe color" that Prime Minister Fumio Kishida is promoting?
That's not all.
The reason for this is that even after nine years in office, he has not been able to achieve its 2% inflation target, and there is growing concern that the economy will fall into "stagflation," which is a combination of unfavorable price increases and economic stagnation.
The market prices of resources and grains, such as crude oil, have risen, corporate costs have ballooned, and price hikes will continue for daily necessities.
But the Bank of Japan, which has not been able to realize its 2% target, cannot take measures to raise interest rates to suppress prices like the central banks of the United States and Europe.
So, in order to overcome such a situation, they may want to change the governor of the Bank of Japan and refresh the atmosphere of the financial market, which is surrounded by a sense of stagnation.
But since there are no scandals, it will be difficult to remove him unless he says he wants to quit.
That's the problem.
Mr. Kuroda, who has been cherished since junior high school for his elite academic background, is unlikely to have the idea of stepping down.
So who will put a bell around his neck and say, "It's time for you to step down?"
Normally, it would be Finance Minister Shunichi Suzuki, who is in charge of making personnel decisions at the supervisory agency, but he is not the right person for the job because of his good personality.
Mr. Suzuki is the brother-in-law of former Finance Minister Taro Aso.
The fact that Mr. Aso was replaced after serving as finance minister for nine years in the Shinzo Abe administration is a symbol of the departure of the Shinzo Abe's colors.
Moreover, Mr. Aso has become the vice president of the Liberal Democratic Party and is supporting the Kishida administration.
So, it would not be surprising if Finance Minister Suzuki were to take on this role.
However, Mr. Aso has been defending Mr. Kuroda, who has been criticized for the side effects of the Quantitative and Qualitative Monetary Easing that has worsened the management of regional banks.
He needs a reason to change his stance.
When Mr. Kuroda was asked at the Budget Committee of the House of Representatives on February 2 if he acknowledged the impact of the Quantitative and Qualitative Monetary Easing on the side effects, he said strongly, "No, I do not."
This answer drew laughter from the ruling and opposition parties.
The mood was one of "You should quit now."
That’s all for now.
Thank you for your visit and interest.
https://youtu.be/Gk_u9KQVRcE
