A new governor at the head of the Bank of Japan for a new monetary policy

On Tuesday, February 14, the Japanese government appointed economics professor Kazuo Ueda as head of the Bank of Japan.

A surprising choice which, for many specialists, feeds the hypothesis of a shift in the country's monetary policy, after ten years of ultra-accommodative policy.

© TORU HANAI/Reuters

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On Tuesday 14 February, the Japanese government appointed economics professor Kazuo Ueda as head of the Bank of Japan.

A surprising choice which, for many specialists, feeds the hypothesis of a shift in the country's monetary policy, after ten years of ultra-accommodative policy. 

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Kazuo Ueda is a monetary policy expert who previously worked at the Bank of Japan from 1998 to 2005. This brilliant academic, who has an in-depth knowledge of finance, is also described as a good communicator.  

These qualities will help the 71-year-old economist meet the immense challenge that awaits him.

Indeed, for ten years, the Bank of Japan has adopted an

 with unconventional tools and dizzying asset purchase programs, mainly Japanese public debt securities.

This strategy

is now at an impasse, because it runs counter to that pursued by the world's main central banks, which have all raised their interest rates.  

Avoid a stock market crash

How to normalize the monetary policy of the Bank of Japan and raise interest rates without putting in difficulty Japanese companies, heavily indebted, and individuals with mortgages to repay?

Kazuo Ueda's mission is therefore complex: to manage this delicate shift, without triggering a stock market crash, and without weakening growth.

The next few months will tell us if he succeeded in his bet. 

► To read also: Inflation in Japan reaches levels not seen since 1991

(

AFP)

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