Japanese gov't is reportedly likely to nominate Kazuo Ueda as the new BoJ Governor, via Nikkei; to nominate Himino as the new Deputy

• Japanese gov't initially approached BoJ deputy Amamiya as a possible successor but was met with a firm refusal.


• Nikkei adds: "He is also known for voting against lifting the zero interest rate policy in 2000. With the BOJ now searching for a way out of its quantitative and qualitative monetary easing efforts, Ueda's selection was likely based on his reassurance that the BOJ would not rush into a hasty exit."

via Nikkei

Reaction details (07:26)

• In an immediate reaction to this report USD/JPY fell from 131.55 to 130.93, before dropping further to a 130.58 session low in the three minutes since before paring marginally and moving back towards the 131.00 handle.


• Alongside this pressure has been seen in core fixed income, with UST Mar'23 dropping from 113.06 to 113.01 and Bund Mar'23 from 136.31 to 135.99 and JGB Mar'23 from 146.56 to 146.21.

Analysis details (07:22)

• Ueda previously served on the BoJ's Policy Board between 1999 and 2005, click here for a list of his speeches during that time.


• The gov't is expected to announce its nomination on February 14th.


• Current Governor Kuroda's term ends on April 8th, after the March meeting but before the April gathering.


• Click here for an article written by Ueda, though this was written in 2016.


• In the 2016 article, Ueda said “Higher inflation rates will allow the BoJ to taper JGB purchases and raise short-term interest rates. JGB yields could increase by more than inflation and the outlook for fiscal sustainability could worsen sharply.” 

10 Feb 2023 - 07:18- Fixed IncomeEconomic Commentary- Source: Nikkei