Bank of Japan (8301) Governor Masaaki Shirakawa will step down on March 19, almost three weeks before
his term was due, accelerating a leadership transition that may
aid Prime Minister Shinzo Abe’s campaign for aggressive easing.
Shirakawa, 63, will exit the same time as two deputy
governors, he told reporters in Tokyo. He was scheduled to leave
on April 8. Japan’s currency slid after the comments, adding to
losses against the dollar since Abe’s administration took office
in December on a platform of greater monetary stimulus and a
reversal of yen strength that has hurt export competitiveness.
The outgoing chief assured the stability of Japan’s
financial system with liquidity injections during the global
credit crisis, and again in the wake of the record March 2011
earthquake and tsunami. At the same time, his failure to end the
nation’s trenchant deflation stoked criticism from lawmakers,
and administration officials have pledged a replacement who
shares Abe’s determination to end price declines.
“The governor’s resignation will likely push forward the
timing of bold monetary easing action,” said Akito Fukunaga,
chief rates strategist at RBS Securities Japan Ltd. in Tokyo, a
unit of Royal Bank of Scotland Group Plc. “Shirakawa has
probably judged that it’s better for the BOJ to start with a new
top three who have similar views.”
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