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6 Feb 2015
BoJ's Harada nomination supports JPY weakness - Nomura
FXStreet (Bali) - According to Yujiro Goto, FX Strategist at Nomura, a tail risk of sudden changes in the BOJ’s monetary stance has diminished significantly, after the official nomination of Mr. Harada as new BOJ board member replacing Mr. Miyao.
Key Quotes
"The government has officially nominated Professor Yutaka Harada as the new BOJ board member to succeed Mr. Miyao today. As the nomination of Mr. Harada has been reported by local media, the decision is unsurprising."
"The ruling coalition now has a majority in both the lower and upper houses and thus, the nomination is likely to be approved smoothly by parliament. His first meeting will be the April meeting on 7-8 April."
"As we have pointed out, Mr. Harada is likely to support Governor Kuroda’s accommodative policy stance, which will make it easier for Governor Kuroda to gain a majority on the board, when he wants to ease monetary policy again. Mr. Harada’s appointment suggests Prime Minister Abe’s strong confidence in Governor Kuroda’s accommodative monetary stance, while there have been concerns over possible differences in their views on JPY weakness and further monetary easing. Another board member, Mr. Morimoto, is also scheduled to retire in June, and Prime Minister Abe is likely to appoint another dovish person then, to continue shifting the balance of power on the board to the more dovish side."
"We expect accommodative monetary policy by the BOJ to support gradual JPY weakness throughout 2015. A tail risk of sudden changes in the BOJ’s monetary stance has diminished significantly, after the official nomination of Mr. Harada."
Key Quotes
"The government has officially nominated Professor Yutaka Harada as the new BOJ board member to succeed Mr. Miyao today. As the nomination of Mr. Harada has been reported by local media, the decision is unsurprising."
"The ruling coalition now has a majority in both the lower and upper houses and thus, the nomination is likely to be approved smoothly by parliament. His first meeting will be the April meeting on 7-8 April."
"As we have pointed out, Mr. Harada is likely to support Governor Kuroda’s accommodative policy stance, which will make it easier for Governor Kuroda to gain a majority on the board, when he wants to ease monetary policy again. Mr. Harada’s appointment suggests Prime Minister Abe’s strong confidence in Governor Kuroda’s accommodative monetary stance, while there have been concerns over possible differences in their views on JPY weakness and further monetary easing. Another board member, Mr. Morimoto, is also scheduled to retire in June, and Prime Minister Abe is likely to appoint another dovish person then, to continue shifting the balance of power on the board to the more dovish side."
"We expect accommodative monetary policy by the BOJ to support gradual JPY weakness throughout 2015. A tail risk of sudden changes in the BOJ’s monetary stance has diminished significantly, after the official nomination of Mr. Harada."