Change in leadership at the central bank of Japan will take place next spring

The change in leadership at the Bank of Japan (BOJ) is scheduled for the spring of 2023, as Haruhiko Kuroda will step down as the bank’s Governor. Such changes might have a negative impact on the functioning of global financial markets, as well as provoke a lot of speculation in the face of a possible monetary policy change in the country.

According to Bloomberg’s survey, a majority of market participants interested in the BOJ’s news consider Masayoshi Amamiya, current Deputy Governor, and Hiroshi Nakaso, previous Deputy Governor during Kuroda’s first term, to be the most likely candidates for the Governor’s post at the central bank.

Japan’s Prime Minister Fumio Kishida will make a final decision on the leadership change in the upcoming months, and many see this step to be equally important for Kishida himself, as he currently faces a drop in public support.

The results of the recent Bloomberg’s study showed that the respondents’ favorite is Masayoshi Amamiya, also known as the “emperor” of the central bank, who played one of the key roles in rethinking Japan's monetary policy. He received 30 out of 41 votes in the survey.

Hiroshi Nakaso, in turn, is chairman of Daiwa Institute of Research, who also takes a leading part in the movement, positioning Japan as the key financial center of Asia and promoting a so-called “green financing”, which prioritizes environmental issues, as well as reducing a negative industry impact.