Analysis-Mr. Exit or Mr. BOJ? Race for Japan's top central bank job to intensify

TOKYO : The decision over who will be the Bank Japan's next chief will likely focus on two career central bankers whose different policy approaches and track records could affect the timing of an eventual exit from ultra-easy monetary policy.

But the two could differ on how soon the BOJ should roll back a complex framework of policies that combine huge asset buying, negative short-term interest rates and a 0 per cent yield cap that makes Japan an outlier amid a global scramble to raise rates, they say. Prime Minister Fumio Kishida's selection of a successor to BOJ governor Haruhiko Kuroda, whose term ends in April next year, is likely to intensify after an upper house election in July.

In a recently published book, Nakaso laid out in detail how the BOJ could end ultra-loose policy: Raise the interest paid on financial institutions' excess reserves, stop reinvesting money from bonds when they mature, and gradually trim the bank's balance sheet to levels where market functions recuperate.

Unlike Nakaso, whose career centred on international and market affairs, Amamiya has spent most of his years at the BOJ drafting monetary policy ideas. He is known for masterminding many unconventional monetary easing steps that earned him the nick-name"Mr. BOJ."To be sure, Kishida could opt for a dark horse with no background in monetary policy.

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