"Amamiya is the architect of many of the BOJ's existing policy frameworks"
- Yasuhide Yajima, chief economist at NLI Research Institute
A reappointment of Masayoshi Amamiya, a mastermind of quantitative easing, is adding to signs that the Bank of Japan will soon introduce a radical shift in its policy framework. Amamiya, who was earlier admired for his ability to generate new creative banking ideas, will now oversee a key division charged with drafting monetary policy. He was also deeply involved in the creation of the BoJ's current monetary easing tool, its asset buying programme, so his appointment implies smooth policymaking for the new BoJ leadership that takes over this week. Haruhiko Kuroda, Kikuo Iwata and Hiroshi Nakaso will take control of the central bank on March 19, when the current governor, Masaaki Shirakawa, steps down. Japanese central bank is widely expected to ease its monetary policy through increases in purchases of longer-dated government bonds.
"Amamiya is the architect of many of the BOJ's existing policy frameworks. His return now may be to review them and prepare for an overhaul in time for the BOJ's next rate review in April," said Yasuhide Yajima, chief economist at NLI Research Institute in Tokyo.
"The next focal point is whether Kuroda will hold an emergency meeting," before the scheduled April 3-4 board gathering, said Shuichi Obata, senior economist at Nomura Securities Co. in Tokyo.
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