The Bank of Japan is already on a rate normalisation path:
There is a vacancy to be filled on the policy board. Prime Minister Ishiba has nominated Junko Koeda, a Waseda University professor, according to a document released to reporters in parliament in Tokyo on Tuesday.
The nomination is for the replacement of Seiji Adachi, a former private economist whose five-year term ends on March 25. Koeda previously worked as a chief economist at the Finance Ministry and as an economist at the International Monetary Fund.
Masazumi Wakatabe, former BOJ deputy chief remarked:
- “She has suggested that rate hikes aren’t necessarily contrary to economic growth”
- “This is my view, but her arguments may be considered as supportive for BOJ normalization”