Central Banks
Amamiya Would Weigh on Yen, Be a Boost for Bonds, Analysts Say
- Current deputy governor would be seen as dovish choice
- Traders could pull bets on early withdrawal of stimulus
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If reports are accurate and Masayoshi Amamiya becomes the next Bank of Japan governor, that would be bullish for bonds and weigh on the yen and local financial stocks, according to market participants.
Strategists and economists focused on Japan expect investors may need to recalibrate their expectations for policy adjustment if Amamiya is confirmed. The Nikkei reported that the current deputy governor was approached by the government for the role, a choice that would be seen as likely to extend the central bank’s ultra-easy monetary policy.