THE HEAD OF THE JAPAN BANK OF KHARUHIKO KURODA WAS RETURNED TO THE SECOND TERM
Today, the head of the Bank of Japan was reelected for a second term in a difficult period for the Japanese and world markets, which suffered from expectations that central banks would stop stimulating policies.
The substitutes Kurody were appointed Masazumi Vakatabe and Masayoshi Amamiya.
While Kuroda assured that he would maintain an ultra-soft monetary policy, he did not mention the need to extend the incentive program, noting that it is likely that rates will rise if inflation prospects improve.
Vakatabe will enter the governing council, which is divided into supporters of increasing the size of monetary policy or maintaining the same size and stopping incentives.
Many economists expect that the next step of the Bank of Japan will be the curtailing of the stimulus program.
However, the recent rise in the yen has become a new headache for the central bank, as the currency may damage the export-dependent economy.
The yen reached a 15-month high, and the finance minister noted the need for stronger measures to combat deflation.
In 2013, the central bank launched a radical asset repurchase program aimed at combating deflation and achieving a 2% target inflation rate.
In 2016, the Bank of Japan was forced to review its program, and shift the focus on interest rates, rather than the pace of printing money.