Bank of Japan (8301) Governor Haruhiko Kuroda will probably be reconfirmed by parliament for a full five-year term tomorrow, after the bank said it will double monthly government bond purchases in a bid to defeat deflation.
Kuroda became central bank chief in March, serving the remaining three weeks of outgoing Governor Masaaki Shirakawa’s term, and parliament will vote tomorrow for a full term beginning April 9. Yoshimi Watanabe, whose Your Party opposed Kuroda last month, today said he now supports him, virtually guaranteeing confirmation.
The BOJ’s policy board today voted to increase bond purchases to 7 trillion yen ($74 billion) per month, while dropping a limit on the maturities of debt it buys. The first announcement under Kuroda sent the yen down the most against the dollar since October 2011, boosted stocks and sent 10-year bond yields to their lowest on record.
Economy Minister Akira Amari told reporters that the central bank had changed greatly under Kuroda and was falling in line with Prime Minister Shinzo Abe’s policies to end 15 years of falling prices.
The lower house of parliament will vote around 12:15 p.m. and the upper house is scheduled to vote around 12:30 p.m.
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