On Wednesday, the BOJ officially assigned a faithful supporter of negative interest rates, Makoto Sakurai, a new BOJ board member. The given move is expected to change the overall balance of opinion on the bank’s board in favor of Haruhiko Kuroda, today’s chief of the Bank of Japan.
It has been recently posted that the upper house of Japanese parliament officially approved Makoto to take the position, thus following a similar verdict in the lower house yesterday.
The arrival of another reflationist in the BOJ’s policy-setting board is going to drastically enhance Kuroda’s already firm grip on decision generating in this major financial institution. By the way, the policy board was heavily split when it came to deciding regarding the introduction of negative rates during the BOJ’s gathering in January.
The chief of the financial research institute, Sakurai, is expected to replace Sayuri Shirai, as his term will expire by March 31. Sayuri opposed the BOJ’s recent verdict to bring interest rates into negative territory.
Additionally, unlike his predecessor, Sayuri considers negative rates to be a great tool to spur lending.