Kishida: Next BOJ gov. depends on economy

Jiji Press

17:35 JST, December 27, 2022

TOKYO (Jiji Press) — Prime Minister Fumio Kishida said Monday that he will decide whom to appoint as the next governor of the Bank of Japan while closely watching economic conditions.

“The person best suited to deal with the economic situation in April will be appointed to the job,” Kishida said in a speech delivered in Tokyo at a meeting of the Research Institute of Japan, a Jiji Press affiliate.

Current BOJ Gov. Haruhiko Kuroda’s term is set to expire in April next year.

Kishida said it was “too early” to discuss revising the 2013 joint statement by the government and the BOJ that calls on the central bank to achieve 2% inflation as early as possible.

He said that he will discuss the matter after the next BOJ chief is decided.

The prime minister welcomed the BOJ’s decision last week to raise its cap on long-term interest rates, saying it was designed to “enhance the sustainability of the effects of monetary easing, and not a change in or an exit from the easing policy.”

Kishida said he and Kuroda agreed to pursue economic growth that is accompanied by higher wages, and price stability when they met last month.

The prime minister asked for people’s understanding over his decision to raise taxes to fund increased defense spending, saying, “Do we really want to issue more government bonds to buy missiles and fighter jets, forcing a greater burden onto our children and our grandchildren?”

“It is my historical duty to persevere in working out solutions for issues that can’t be put off,” such as those related to national security, Kishida said.

In the face of a spike in coronavirus cases, Kishida reiterated his call for people to take thorough precautions.