Kishida seeks variety in picking Uchida, Himino as BOJ deputies

Bloomberg

Japanese Prime Minister Fumio Kishida nominated a Bank of Japan (BOJ) policy veteran and a former chief financial regulator as central bank deputies to support his pick of university professor Kazuo Ueda for the top job.
The selection of Shinichi Uchida, the central bank’s executive director and Ryozo Himino, also a former finance ministry official known for his international connections, hints at Kishida’s intention to ensure wide-ranging expertise in the BOJ’s top brass to support its new chief.
The latest choice of governor breaks from a tradition of alternating the top post between former finance ministry and BOJ officials.
Ueda is expected to be confirmed by parliament as the first academic to take the central bank’s helm in its history. He holds a PhD from the Massachusetts Institute of Technology, and has been referred to as Japan’s Ben Bernanke.
For the past decade, Uchida has worked closely with Governor Haruhiko Kuroda over the BOJ’s easing policy. Choosing him means the bank’s top
leadership will still have a key central banker with detailed knowledge of the stimulus
programme.
Uchida seems to share Kuroda’s view that the bank shouldn’t raise borrowing costs until stable inflation is in sight with solid wage gains. Still, his record of also serving Kuroda’s predecessor Masaaki Shirakawa hints at his flexibility.
Last year, he said widening the band around the central bank’s yield target would be equivalent to a rate hike and wouldn’t be favorable for Japan’s economy. Still, some months later, the bank jolted global financial markets by abruptly expanding the trading band.
After graduating from the University of Tokyo with a degree in law in 1986, Uchida began his career at the central bank and steadily rose up the ranks. He held a number of key positions, including director-general of the monetary affairs department in his 40s, an unusually young age for the position. He was also head of the Nagoya branch, home of automaking giant Toyota Motor Corp.
Uchida also climbed up the same ladder as current Deputy Governor Masayoshi Amamiya and former Deputy Hiroshi Nakaso, and was promoted from a director position.
Back in 2013, Uchida played a major role in designing Kuroda’s unconventional monetary policy. He was also involved in introducing negative interest rates and yield-curve control in 2016.
The 60-year old has also committed to developing the central bank’s digital currency capabilities, as an executive director in charge of payment services, along with monetary policy and financial markets.
Himino has also long been considered one of the leading deputy candidates, and connects the BOJ leadership with the powerful Ministry of Finance.
Still, his pipeline to the ministry is weaker compared with Uchida’s central role at the BOJ, given he moved to the Financial Services Agency at a relatively early stage of his career.
The 62-year old is also known for his past responsibilities beyond Japan’s borders.