The nomination of Haruhiko Kuroda to be governor of the Bank of Japan shows that there is no let up in the surprising momentum of Shinzo Abe since his return to office. The Japanese prime minister wants the central bank to end the country’s economic malaise and has nominated a deflation-fighting trio to lead the charge.
Mr Kuroda, the president of the Asian Development Bank who has expounded forceful anti-deflation views, will be joined by Kikuo Iwata, a critic of the BoJ, and the current assistant governor Hiroshi Nakaso, a BoJ lifer but not one drawn from the bank’s monetary policy wing.
Mr Kuroda’s appointment breaks new ground. He is the first official with a background in the powerful Ministry of Finance to become governor since the BoJ gained independence in 1998. He is also the first to become governor from the international side of that ministry. With the world now watching Japan, his connections and communication skills could prove useful.