Japan PM’s push for radical BOJ head meets resistance
TOKYO (Reuters) The moncler outlet online Japanese prime minister push for a governor who will lead a radical policy shake up at the Bank of Japan is meeting resistance from his own cabinet and financial bureaucrats, who fear extreme measures from the central bank may trigger a damaging rise in moncler outlet bond yields.
Japan’s Prime Minister Shinzo Abe attends a rally to call on Russia to return a group of islands, called Northern Territories by Tokyo and Southern Kuriles by Moscow, at a Northern Territories Day rally in Tokyo February 7, 2013. REUTERS/Toru Hanai
That tussle is cheap moncler sale testing Shinzo Abe resolve to push through with his pledge for an overhaul of the monetary policies that have so far failed to moncler sale jump start Japan from years of economic malaise.
The delicate political maneuvering needed to ensure parliamentary approval could mean that Abe may have to settle for someone who is not his first choice, officials close to Abe and those involved in the selection process say.
will have the final word. Still, it will be a close call with a lot of complexities involved, said a government official with knowledge of the negotiations.
It is virtually a given that whoever takes over in coming weeks as head of the Bank of Japan moncler outlet woodbury will pursue monetary easing with more vigor than outgoing governor Masaaki Shirakawa. Having cut interest rates almost to zero, the BOJ has adopted policies that inject cash into the economy.
At stake is how far the new BOJ chief will be prepared to push the central bank into untested policy waters in answer Abe call for an all out assault to break Japan out of years of grinding deflation and its fourth recession since 2000.
BALANCING ACT In the bureaucrats corner is Toshiro Muto, 69, a former top level financial official expected to push harder on moncler sale online the gas pedal than Shirakawa but to watch out for potential potholes and speed bumps.
He advocates the BOJ buying more longer dated government bonds and expanding asset purchases more aggressively. But he has also warned that printing money to finance public debt could backfire and trigger a sharp bond yield spike.
That could significantly add to Japan public debt burden, already the highest in the industrialized world at more than twice the size of the economy.
For the former top finance ministry bureaucrat monclerdownjacket moncler womens jackets and BOJ deputy governor, it is the second chance to land the top job at the central bank. His candidacy was struck down in parliament five moncler outlet sale years ago, allowing Shirakawa to come in as a compromise candidate.
In Abe corner, there is a small group of hopefuls advocating unorthodox and sometimes controversial steps, such as buying foreign moncler outlet bonds and more risky assets, to help Japan new leader make good on his pledge to revive the stagnant economy with moncler online store powerful monetary and fiscal stimulus.
Asian Development Bank President Haruhiko Kuroda, 68, is a vocal critic of Shirakawa BOJ cheap moncler jackets policies and a frontrunner in Abe camp pushing for moncler usa a revamp of the central bank policies.
Kuroda ticks most of the boxes on the ruling and opposition parties wish list. That is important because whoever Abe government picks will need approval from both houses of parliament, including the upper chamber where Abe Liberal Democratic Party (LDP) and its small ally lack a majority.
Daiwa Institute of Research Chairman and former Bank of Japan Deputy Governor Toshiro Muto poses after an interview with Reuters in Tokyo September 11, 2012. REUTERS/Yuriko Nakao
Kuroda, who was moncler outlet prices Japan top currency diplomat in the wake of the Asian financial crisis in the late 1990s, has management, markets and international expertise. He moncler sale outlet is a fluent English speaker with a network of global contacts.
ABE MOMENTUM It is up to Abe and his cabinet to put forward a candidate to replace Shirakawa and his two deputies on the nine person board. That is expected by the cheap moncler jackets mens end of this month.
Abe told parliament on Thursday the new BOJ governor must be able to communicate Tokyo policy stance to the global community, a sign he may be favoring someone like Kuroda.
The headhunting gained momentum on Tuesday after Shirakawa said he would leave on March 19, three weeks before the end of his term, to synchronize his departure with that of his deputies.
The news drove the yen down to its lowest level against the dollar since May 2010 as markets brought forward the anticipated timing of more aggressive uk moncler sale easing under a new BOJ leadership.
The yen retreat from record highs scaled in the past two years has already offered welcome relief to Japanese exporters and a rally in the Tokyo stock market, which closed on Wednesday at its highest level in more than four years.
Shares in cheap moncler coats mens Toyota Motor Corp hit a four year high after the automaker lifted its annual profit guidance, partly because of the weakening yen.
Abe is keen to maintain the momentum behind his economic prescription dubbed and appointing an outsider with unorthodox ideas could accomplish that.
Kuroda, who calls on the BOJ to buy more risky assets, or academics Kikuo Iwata and Takatoshi Ito, among the BOJ harshest critics and advocates of a rapid expansion of the central bank balance sheet, fit the bill.
has said he wants someone who can drive the BOJ into taking moncler outlet store unprecedented policy steps. It wouldn make sense for him to choose an ex bureaucrat, said another source.
A man walks past the Bank of Japan headquarters in Tokyo, in this file picture taken December 19, 2012. REUTERS/Yuriko Nakao/Files
IN MUTO FAVOUR Still, several factors seem to act in Muto favor.
First, alarmed by the radical views of Abe favorites, BOJ and Ministry of Finance bureaucrats have set best moncler jackets aside their differences and have been lobbying together for someone like Muto, who could discount moncler jackets be relied on to avoid anything that could jeopardize financial market stability, sources with knowledge of the cheap moncler jackets womens negotiations said.
Secondly, not everyone in Abe cabinet and the LDP is as hell bent on shaking things up at the BOJ as some of his close aides, moncler uk outlet they said uk moncler outlet.