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    Ueda Kazuo Appointed as Next Bank of Japan Governor, Market Reacts Dramatically


    Japan is set to appoint Kazuo Ueda, a professor and former Bank of Japan board member, as the central bank’s next governor, in a sudden switch away from the candidate thought to be the leading contender.[0] Japanese Prime Minister Kishida Fumio intends to appoint Ueda Kazuo as the next Bank of Japan governor, taking over from Kuroda Haruhiko.[1]

    The speculation began when the government had initially approached BoJ deputy governor Masayoshi Amamiya as a possible successor to Haruhiko Kuroda, but he declined the position.[2] Ueda is unlikely to be expected to immediately change the BoJ's policy stance based on his previous remarks, though traders are speculating he is unlikely to be as cautious as Amamiya on tightening policy.[3]

    As he is not a member of the Bank of Japan and was not a part of the aggressive stimulation strategies of the past ten years, it is thought that he may be more willing to increase interest rates.[4] My first take is that the BoJ and Government is already looking at the following Governor which is likely going to be Shinichi Uchida, ace proper BoJ banker.[5] It appears Professor Ueda has been appointed to a one-term tenure as Governor of the Bank of Japan, in order to untangle the web of policies they are currently dealing with.[5]

    Ueda, who is an economics professor at Kyoritsu Women's University, would be the first candidate from the academia to become the BoJ Governor in postwar Japan.[3] The monetary policy expert, aged 71, was a member of the Bank of Japan (BoJ) board from 1998 to 2005.[3]

    Jan von Gerich, chief strategist at Nordea Markets in Helsinki, commented that the market anticipates a shift in BOJ policy under Ueda in comparison to the path that was expected under Amamiya.[5] ING economists pointed out that Ueda has warned against raising rates too early but has also argued that an exit strategy from the current ultra-easing framework is needed at some point in the future.[3]

    The market reaction to the news of Ueda’s nomination was dramatic, taking the yen sharply higher, and selling JGBs. Japanese stocks experienced a slight increase, whereas the other large equity markets in the Asia Pacific region experienced a decrease in value.[6] The dollar went down from around JPY131.55 to approximately JPY129.80.[6] JPY131.00 was recovered and is now surpassed.[6]

    0. “Japan's Kishida Picks Academic Kazuo Ueda to Helm BOJ, Reports Say” Bloomberg, 10 Feb. 2023,

    1. “Japanese yen jumps on report Kazuo Ueda will be next governor of the central bank” CNBC, 10 Feb. 2023,

    2. “Japan sounds out BOJ deputy Amamiya for central bank governor” Nikkei Asia, 5 Feb. 2023,

    3. “Kazuo Ueda Nomination As BoJ Chief A Harbinger Of Policy Shift” RTTNews, 10 Feb. 2023,

    4. “Week Ahead – US Inflation and BoJ Governor Nomination in Focus” Action Forex, 10 Feb. 2023,

    5. “Surprise BOJ Pick to Send Yen Up, Stocks Down, Strategists Say” Yahoo Canada Finance, 10 Feb. 2023,

    6. “A Day Of Surprises” Seeking Alpha, 10 Feb. 2023,

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