Bank of Japan Gov. Haruhiko Kuroda set to serve 2nd term

TOKYO – The government has nominated Bank of Japan Gov. Haruhiko Kuroda to serve a second five-year term as the head of the central bank.

The proposal Friday to a parliamentary committee was expected to gain approval before Kuroda’s term expires at the end of March.

A finance ministry veteran, Kuroda has led an effort to spur growth through what he has called a “big bazooka” of monetary stimulus.

Prime Minister Shinzo Abe has relied heavily on Kuroda’s deflation-fighting strategy of massive asset purchases by the central bank. Despite that unprecedented level of stimulus and a negative interest rate policy that is keeping credit ultra-cheap, the 2 per cent inflation target they set nearly five years ago remains distant.

By appointing Kuroda, 73, Abe is signalling the government’s commitment to those policies.