The two-day meeting of the Bank of Japan’s Policy Board which concludes next Thursday (7th March) will of course be overshadowed by the imminent departure of Governor Shirakawa and his two Deputies. The Board will probably be happy to sit on the sidelines until the new team is in place. Haruhiko Kuroda and Hiroshi Nakaso would be relatively uncontroversial picks for Governor and Deputy Governor respectively. There are also plenty of “dovish” alternatives to Professor Kikuo Iwata, who may be too outspoken for the other Deputy post. However, a closer look at Mr Kuroda’s policy options suggests that the markets’ expectations of much more aggressive easing are likely to be disappointed.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services