Japan to submit BOJ board nominee to parliament as early as this month - report

For some context, the BOJ board nominee here will be one to replace Asahi Noguchi - whose term will end on 31 March. Noguchi was a former economics professor at Senshu University and joined to BOJ board in April 2021. He has always been one of the more dovish members, advocating for a more "measured" approach in normalising policy.

Anyway, the report notes that the Japanese government is set to submit their choice of nominee as early as 25 February. That in order to fill the seat that will be vacated by Noguchi at the end of March. As a reminder, the nominee must be approved by both the lower house and upper house of the National Diet.

It is also reported that Noguchi's successor is expected to be part of a broader group of nominees that are also in contention for senior positions at several government-affiliated institutions. So, that might speak to the choice of nominees that will be on the shortlist.

If Takaichi's new economic advisory panel is any guide, then the nominee is likely to be another "yes man". And that means preserving the more dovish angle at the BOJ, considering the government wants the central bank to keep interest rates on the lower side in order to push their fiscal agenda.

Besides that, the report also says that the government might also include another nominee to replace Junko Nakagawa - whose term will expire on 30 June. Nakagawa was formerly the chair of Nomura Asset Management and joined the BOJ board in June 2021.

Nakagawa certainly isn't as dovish as Noguchi in her policy stance but she is a reliable vote for the broader consensus of the BOJ.