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PM Kishida still in process of choosing new BOJ governor
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Close coordination with global central banks crucial -
Kishida
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Communication to and from markets also important - Kishida
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Govt to present BOJ nominees to parliament next week -
sources
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Some see ex-BOJ Nakaso as meeting Kishida's qualification
(Adds analyst quotes)
By Leika Kihara
TOKYO, Feb 8 (Reuters) - Japanese Prime Minister Fumio
Kishida said the new central bank governor must have strong
communication skills and be able to closely coordinate with
global peers, offering his most explicit comment to date on his
preference for the top job.
Speaking in parliament, Kishida said on Wednesday he was
still in the process of selecting the successor to incumbent BOJ
Governor Haruhiko Kuroda, whose term ends in April, noting "the
impact the decision would have on financial markets."
While Kishida did not name any potential candidates for the
job, some central bank watchers say his comments suggest he has
not ruled out Hiroshi Nakaso, a former BOJ deputy governor with
international experience, previously thought to have pulled out
of the race.
"Since the Lehman crisis, close coordination among major
central bank leaders, as well as the ability to receive and
deliver high-quality communication to and from domestic and
overseas markets, have become extremely important," Kishida
said.
"I'd like to select (the next BOJ governor) taking these
factors into account," Kishida said, when asked by an opposition
lawmaker what the qualifications Kuroda's successor must have.
Markets are closely watching the appointment of the new BOJ
governor for clues on how quickly the central bank could phase
out its massive stimulus.
Up till now, Kishida had stayed mum on key qualifications
for the BOJ leadership position, saying only he would choose the
person best suited for the role.
His remarks came in the wake of a report by Nikkei newspaper
on Monday that the government has sounded out BOJ Deputy
Governor Masayoshi Amamiya to succeed Kuroda.
A career central banker who has drafted many of the BOJ's
monetary easing tools, Amamiya is seen by markets as a top
contender. However, his experience is focused on domestic
monetary policy matters, rather than international affairs.
"It sounded as if Kishida had someone else in mind besides
Amamiya, though he's probably still a strong candidate," said
Izuru Kato, chief economist at Totan Research.
Among other key contenders, Nakaso has long experience
overseeing the BOJ's market operations and international
affairs.
"Nakaso fits perfectly with what Kishida laid out as key
qualifications, such as his fluent English and strong contacts
with overseas central bankers," said Nobuyasu Atago, a former
BOJ official who is now chief economist at Ichiyoshi Securities.
As head of the BOJ's financial markets department, Nakaso
worked with overseas counterparts in managing the global
financial crisis after the collapse of Lehman Brothers in 2008.
Nakaso said last week he has taken up a post heading an
Asia-Pacific Economic Cooperation (APEC) advisory council, a
comment that led some market players to bet he had dropped out
from the central bank leadership race.
The government is considering presenting to parliament its
nominees for next BOJ governor and two deputy governors next
week, sources told Reuters.
The government's nomination needs the approval of both
houses of parliament, making it effectively a done deal since
the ruling coalition holds solid majorities in both chambers.
Kuroda's second, five-year term ends on April 8. His two
deputies, Amamiya and Masazumi Wakatabe, will see their terms
end on March 19.
(Reporting by Leika Kihara; Additional reporting by Tetsushi
Kajimoto; Editing by Chang-Ran Kim, Shri Navaratnam and Sam
Holmes)
