Prime Minister Shinzo Abe has indicated his hope to retain Bank of Japan Governor Haruhiko Kuroda, whose current term will end on April 8. At a Lower House Budget Committee session held on Feb. 6, Abe noted, “I trust his ability and want him to make steady efforts to achieve a 2% inflation target.” Within the month, the government plans to request Diet approval for candidates to fill the post of the governor as well as to the two deputy governors whose terms will end in March.
On Feb. 6, the Tokyo market plunged over 1,000 yen. There are looming concerns that the economy may slow down. Abe may have hinted at retaining Kuroda to stem the spread of market anxiety. (Abridged)