Bank of Japan 'could add monetary stimulus in April'

1 March 2013

The Bank of Japan (BoJ) could be set to add monetary stimulus sooner rather than later following the appointment of a new governor.

Haruhiko Kuroda, currently the president of the Asian Development Bank, is expected to be given the role when Masaaki Shirakawa retires on March 19th, provided he is confirmed to the post by parliament.

Bloomberg reports that Mr Kuroda is likely to add this stimulus as early as April as he looks to take a more aggressive stance with regard to falling prices.

According to analysts at banks from Nomura Holdings and Mizuho Securities, easing could be on the cards when a meeting takes place on April 3rd and 4th.

Masaaki Kanno, chief Japan economist at JPMorgan Chase in Tokyo, predicted open-ended bond purchases brought about by the BoJ will be introduced in May or June rather than the scheduled January date.

Mr Kanno stated: "The party has just started ... Give us more alcohol and get us excited - he will do that."

By Asim Shah

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