Next Bank of Japan chief could be surprise pick

STORY: Japan’s government will name its nominee to take over at the Bank of Japan next week.

And it looks like a surprise name is emerging as the front runner.

Reuters sources say the choice will be 71-year old academic Kazuo Ueda.

He’s a former BoJ board member, and is seen as an expert on monetary policy.

But he hadn’t even been considered a dark-horse candidate for the job.

Deputy governor Masayoshi Amamiya had been considered the favourite.

Ueda would take over from outgoing governor Haruhiko Kuroda, who will depart in April after a decade at the helm.

He became known for presiding over ultra-loose monetary policy, including a huge programme of asset purchases intended to jolt the country out of deflation.

Now investors are rushing to figure out whether the new man would change course.

BoJ-watchers describe Ueda as a respected pragmatist.

They predict he will make moves to normalise monetary policy, but in small, cautious steps.

Japan’s parliament will need to approve whichever person is nominated.