Japan's lower house of parliament confirmed Junko Koeda to join the Bank of Japan’s policy board, essentially ensuring she’ll be approved, in a development that supports the bank’s quest to raise its benchmark rate at a gradual pace.
Prime Minister Shigeru Ishiba’s minority government tapped Koeda to succeed Seiji Adachi ahead of the March 25 conclusion of his five-year term. With the ruling coalition parties holding a majority in the upper house — where a vote will be held on Monday — Friday’s approval makes it all but certain Koeda will join the nine-member board, becoming the second female in the group. The central bank hasn’t had multiple women on the board since the current system was adopted in 1998.
Koeda, a Waseda University professor, is expected to support the BOJ’s intention to steadily normalize policy by moving closer to the neutral interest rate, as comments she’s made in the past indicate she supports having a conventional rate paradigm. Parliamentary approval also suggests the BOJ’s policy moves haven’t become a major issue among political parties even after Gov. Kazuo Ueda conducted three rate hikes over the last 12 months.
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