That Bird Won't Fly: There’s No Hawk Coming to the BOJ
Speculation about Kuroda’s successor is reaching fever pitch. But big change is still a long way off for whoever gets the job.
All aflutter.
Photographer: Warren Little/Getty Images
A hawk in Japan is an uber-dove anywhere else. The country that pioneered zero interest rates and introduced quantitative easing to the world isn’t rushing to reverse course. While Japan may inch away from the most muscular form of easing, its central bank won’t embrace tight money. Ornithology requires a new vocabulary here.
The central banking world is aflutter over the impending nomination of Haruhiko Kuroda’s successor as head of the Bank of Japan. The yen retreated after Nikkei reported this week that Masayoshi Amamiya, the deputy governor and betting favorite, had been approached to fill the role. The currency’s decline reflected the prevailing view among investors that under Amamiya, the prospect of a hawkish turn in policy would be fairly remote.