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Japanese businesses have high hopes for Kuroda

Publication Date : 27-02-2013

 

Japan's business community has welcomed the government's decision to nominate Asian Development Bank President Haruhiko Kuroda as the next governor of the Bank of Japan.

As Kuroda supports bold monetary easing policies and is well known in the international finance arena, he is expected to work on pulling the country out of its prolonged deflation in cooperation with the government.

Hiromasa Yonekura, chairman of the Japan Business Federation (Keidanren), said at a press conference Monday: "He has many contacts overseas and is the best choice to be governor of the bank. As he provided strong leadership in the ADB, I think this choice is very good." Kuroda was also vice minister for international affairs in the Finance Ministry.

Yonekura expects Kuroda to implement the joint statement issued last month by the central bank with the government, that specifies their respective roles in pulling the nation out of deflation.

He added, "It is important for him to implement it quickly in coordination with the government."

Kuroda has served as ADB president since 2005. Taizo Nishimuro, an adviser to Toshiba Corp. and head of the postal privatization monitoring panel, said at another press conference Monday, "He will be able to hold his own in serious discussions with the presidents of other Asian central banks including China."

Under the Abe administration, the yen has weakened and Japan has been criticised for manipulating the yen's value by some countries. A Keidanren executive said, "Kuroda can clearly convey Japan's intentions at international meetings."

Mitsudo Urano, chairman of Nichirei Corp. and a member of the government council for regulatory reform, expects Kuroda will be smoothly approved by the Diet.

"I think he's a good choice because he'll be able to achieve mutually beneficial policies between the bank and the government. The government will be able to obtain consent from opposition parties," Urano said.

 

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