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With Japan's new central bank boss, Kishida bids farewell to Abenomics
The tricky task of steering the Bank of Japan (BOJ) out of years of ultra-low interest rates without upending markets required the skill to read markets and clearly communicate policy intentions, both domestically and internationally.
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A man walks past Bank of Japan's headquarters in Tokyo on June 17, 2022.
(Reuters/Kim Kyung-Hoon)
F
or Prime Minister Fumio Kishida, Japan's next central bank chief had to symbolize a departure from the unconventional policies of his predecessor Shinzo Abe - but without angering pro-growth lawmakers of Abe's powerful political faction.
The tricky task of steering the Bank of Japan (BOJ) out of years of ultra-low interest rates without upending markets required the skill to read markets and clearly communicate policy intentions, both domestically and internationally.
Kazuo Ueda, a 71-year-old university professor who has kept a low profile despite strong credentials as a monetary policy expert, ticked some important boxes.
He was branded neither an explicit dove nor hawk. While he was not even on the list of dark horse candidates floated by the media, Ueda was well known in global central bank circles.
Having an academic helm the BOJ is unprecedented in Japan, where the job traditionally rotates between a central banker and an official from the Ministry of Finance (MOF).
But the idea found traction in Kishida's administration, particularly as attempts to convince incumbent deputy governor Masayoshi Amamiya, considered the top contender for the job, failed.
The account of how Kishida chose the new BOJ leadership is based on interviews and conversations with 15 sources, including former and incumbent central bank and government officials, ruling camp lawmakers, aides of Kishida, private-sector bankers and analysts closely watching Japanese politics and policy.
