The initiative of Japanese Prime Minister to bring an end to the stagnation of the economic market for the last two decades took its big step forward as the parliament nominates his choice candidate for the leading team of bank of Japan.
It is declared that Haruhiko Kuroda, who was the president at the Asian Development Bank, got confirmed as the governor of the Bank of Japan, along with his deputies Hiroshi Nakaso and Kikuo Iwata.
Kuroda, wins the position of governor of Bank of Japan with majority of votes at the Parliament. He had strongly supported a target for the inflation of the last decade in advance to the one that is to be set by the central bank on the basis of majority vote in the upper house, which is again supported by the lower body section of the Parliament. The nominees picked by Abe were also approved as deputy governor, even though they were opposed by some of the lawmakers initially.
The outgoing governor of the Asian Development Bank and the nominated governor of the Bank of Japan, Kuroda, most importantly emphasized on the monetary policies that can help end the situation of deflation that has affected the world economic market for the last 15 years. His primary task after being the governor of the bank is to discuss and interact with the board of nine members who are to improve the fresh stimulus, so that there is accelerating purchase of bonds in order to reach out for the expanded target in regard to financial options.
After Kuroda’s election as the governor of the BOJ, his prime focus should be on arranging for a meeting before the 3rd and 4th of April, says Shuichi Obata, the experienced and senior economic analyst of the Nomura Securities Co. based at Tokyo. He also states that the Bank of Japan is estimated to expand the asset maturity options in order to uplift the purchase and sell process.
The stocks of Japan got a high after the confirmation of Kuroda as the governor of BOJ. While in Nikkei 225 Stock Average market, there is a high of 1.2 percent; MSCI Asia Pacific Index witnessed a double rise in gain. The index market of Nikkei is moving forward towards the biggest closing, starting from the date of bankruptcy of Lehman Brothers Holdings Inc. in the year of 2008.
The value of yen was at a down of 96.20, that is almost 16percent, against each dollar, starting from the mid of November when the plans for election was called in. The present scenario of the yen market shows a drop of 22 percent weakness, which has largely affected the export market of Japan.