Incoming Gov. Haruhiko Kuroda and his two deputies are the "right people" to lead the Bank of Japan because of their ability to convey the central bank's intentions to investors, a former BOJ official said.
"These are the right people, the appropriate people, for these important posts," said Tetsuya Inoue, who was associate director general of the BOJ's international finance branch until November 2008 and is now chief researcher for financial markets at Nomura Research Institute Ltd. in Tokyo. "Dialogue with the market will be better, well-designed. That will be a big difference" from the bank under Masaaki Shirakawa.
The yen has fallen 18 percent against the dollar in the past six months on expectations that the next BOJ leadership will carry out additional easing. Shirakawa stepped down Tuesday, with Kuroda taking over Wednesday. Kuroda has pledged to do whatever is needed to end 15 years of deflation, and has expressed confidence a 2 percent inflation target is achievable.