By Leika Kihara
TOKYO (Reuters) – The Bank of Japan’s top economist, Koji Nakamura, was named new executive director overseeing monetary policy and financial markets on Tuesday, the central bank said in a statement.
Nakamura succeeds Takeshi Kato, whose four-year term as one of the BOJ’s six executive directors expired on Monday.
Aside from a one-year stint heading the BOJ’s monetary affairs department, Nakamura’s career at the central bank has largely focused on analysing Japan’s economy.
The appointment of Nakamura comes as the BOJ embarks on a steady interest rate-hike cycle under Governor Kazuo Ueda, after having exited a decade-long stimulus programme last year.
Nakamura headed the BOJ’s research and statistics department from May last year, during which the central bank raised interest rates twice on the view Japan was making progress towards durably achieving its 2% inflation target backed by wage gains.
“It may be a sign the BOJ sees the need to beef up economic analysis” in setting policy as public perceptions of future price moves change, Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said on the appointment.
Nakamura’s credentials compare with those of his predecessor Kato, a law degree holder who spent most of his career at the BOJ drafting monetary policy and was known for his deep contacts in political and bureaucratic circles.
Takuji Kawamoto, a career central banker with a PhD in economics, will succeed Nakamura as head of the BOJ’s research and statistics department.
Governor Ueda is a prominent academic specialising in monetary policy with a PhD from the Massachusetts Institute of Technology.
(Reporting by Leika Kihara; additional reporting by Takahiko Wada; Editing by Himani Sarkar and Kim Coghill)
