Haruhiko Kuroda has a "good chance" to be re-appointed for a second term as Bank of Japan's governor, according to a senior official of Prime Minister Shinzo Abe's ruling party.
"There shouldn't be big changes in monetary policy, especially when financial markets have been very sensitive about any hint of an exit strategy," Masahiko Shibayama, a senior Liberal Democratic Party official who is close to Abe, said in a Wednesday interview.
With the Federal Reserve normalizing policy and the European Central Bank hinting at ending asset purchases, focus has sharpened on the future direction of Japan's central bank. Bond and currency traders are looking for any sign of when, and how, the bank might alter current policy.