Japan’s LDP Policy Head Says Monetary Policy Has Room for Reform

The policy chief for Japan’s ruling Liberal Democratic Party said the country’s easy monetary policy should be maintained, but has room for adjustment and reform.

(Bloomberg) — The policy chief for Japan’s ruling Liberal Democratic Party said the country’s easy monetary policy should be maintained, but has room for adjustment and reform.

Koichi Hagiuda, head of the Policy Research Council at the LDP, made the comments on a program on national broadcaster NHK while discussing the imminent nomination of the Bank of Japan’s next governor.

Investors have kept a close eye on who may be nominated to lead the central bank as it could signal a shift from or a continuation of Japan’s ultra-easy monetary policy, which has been maintained as other developed economies hike interest rates.

Bloomberg and multiple Japanese outlets reported Friday that the government planned to nominate Kazuo Ueda, an economics professor and former BOJ board member, to succeed outgoing governor Haruhiko Kuroda. 

Hagiuda on NHK declined to comment on reports of Ueda’s potential nomination, but said he would expect new Bank of Japan members to have a proactive approach.

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