, Japan

Masayoshi Amamiya retained at BOJ

Mastermind of Japan’s quantitative easing to continue drafting monetary policy.

Masayoshi Amamiya has been reappointed head of the Bank of Japan’s powerful Monetary Affairs Department after being removed from this post in May 2012. Amamiya is the architect of many of the BOJ's existing policy frameworks.

Amamiya has played a key role in creating many BOJ's policies, including the quantitative easing of pumping excess cash into markets via bond purchases that lasted until 2006. In 2010, he was deeply involved in the creation of the BOJ's asset-buying program now being implemented, and its monetary easing in February 2012.

Observers see Amamiya’s return as a sign the central bank is preparing for a radical shift in its policy framework under new Governor, Haruhiko Kuroda. His comeback also increases the chance BOJ will shift its policy closer to the quantitative easing campaign of the last decade.

Kuroda has promised to do whatever it takes to achieve the central bank's new 2% inflation target by focusing on expanding its balance sheet with purchases of longer-term government bonds.

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