The Korea Herald

피터빈트

Kuroda gets BOJ monetary-policy fixer

By Korea Herald

Published : March 18, 2013 - 19:54

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Incoming Bank of Japan Governor Haruhiko Kuroda will have a veteran of quantitative easing as his top policy planner, after Masayoshi Amamiya Monday was brought back from running the bank’s Osaka branch.

Amamiya, who worked in the monetary affairs department for six years before being sent to Osaka in May, got his old job back as one of six executive directors, according to a BOJ statement in Tokyo. The veteran central banker did a stint at the Finance Ministry earlier in his career, an experience he may tap as the government and BOJ step up policy coordination.
A man walks past the Bank of Japan headquarters in Tokyo. (Bloomberg) A man walks past the Bank of Japan headquarters in Tokyo. (Bloomberg)

The central banker, 57, was at the helm of the department that draws up policy options when the BOJ adopted a goal of 1 percent inflation and surprised forecasters by injecting 10 trillion yen of stimulus in February 2012. Now, Amamiya’s return gives him a chance to plot strategy as Kuroda attempts to corral the nine-member board behind more easing.

“Amamiya is well respected inside the BOJ because he is good at finding the middle ground,” said Takahiro Sekido, Japan strategist in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd., who worked at the central bank for 14 years, until 2011. “He will keep Kuroda happy by offering easing options, while he will keep the new regime from crossing the line.”

The return of Amamiya after less than a year as head of the Osaka branch breaks with typical tenures in the job. His dispatching to Osaka months after the February stimulus surprise was also a split with regular personnel announcements traditionally being unveiled in early July.

Shigeki Kushida takes over in Osaka after overseeing the Nagoya branch, the BOJ said Monday. Kazuo Momma, whose job Amamiya is retaking, becomes deputy chief of international affairs ― the outgoing executive director for the bureau is Hiroshi Nakaso, who shifts to deputy governor this week.

Outgoing Governor Masaaki Shirakawa and his two deputies have their last days on the job tomorrow. The departing BOJ chief, who repeatedly warned against the danger of asset bubbles stemming from excess stimulus, holds his farewell press briefing at 3:30 p.m. in Tokyo Tuesday. (Bloomberg)