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26 Feb 2015
BoJ Harada’s appointment approved - Nomura
FXStreet (Bali) - Yujiro Goto, FX Strategist at Nomura, notes that Mr Harada's appointment as a BOJ board member to succeed Mr Miyao will enable Governor Kuroda to keep the pro 'QQE' majority support.
Key Quotes
"The Upper House approved Mr Harada's appointment as a BOJ board member to succeed Mr Miyao, who is scheduled to retire on 25 March. The Lower House approved the appointment too, and Mr. Harada’s succession of Mr Miyao is now officially confirmed."
"Mr Harada is expected to be at the BOJ meeting on 7-8 April. The next meeting on 16-17 March will be the final meeting for Mr Miyao. Since Governor Kuroda took office in April 2013, Mr Miyao has not dissented to any decisions, including the expansion of QQE in October 2014 and the introduction of QQE in April 2013."
"In this regard, Mr Miyao has a dovish bias along with Mr Kuroda and two deputy governors. However, Mr Harada also has a clear dovish bias, supporting aggressive monetary easing to increase inflation."
"Governor Kuroda remains confident about achieving the 2% inflation target, even though he recognises the near-term downside risk to inflation owing to lower oil prices."
"However, Governor Kuroda has stated frequently that he would not hesitate to adjust policy when the BOJ judges the trend of inflation has changed, and Mr Harada’s succession will enable Governor Kuroda to keep majority support."
Key Quotes
"The Upper House approved Mr Harada's appointment as a BOJ board member to succeed Mr Miyao, who is scheduled to retire on 25 March. The Lower House approved the appointment too, and Mr. Harada’s succession of Mr Miyao is now officially confirmed."
"Mr Harada is expected to be at the BOJ meeting on 7-8 April. The next meeting on 16-17 March will be the final meeting for Mr Miyao. Since Governor Kuroda took office in April 2013, Mr Miyao has not dissented to any decisions, including the expansion of QQE in October 2014 and the introduction of QQE in April 2013."
"In this regard, Mr Miyao has a dovish bias along with Mr Kuroda and two deputy governors. However, Mr Harada also has a clear dovish bias, supporting aggressive monetary easing to increase inflation."
"Governor Kuroda remains confident about achieving the 2% inflation target, even though he recognises the near-term downside risk to inflation owing to lower oil prices."
"However, Governor Kuroda has stated frequently that he would not hesitate to adjust policy when the BOJ judges the trend of inflation has changed, and Mr Harada’s succession will enable Governor Kuroda to keep majority support."