MNI: ### POV: COULD DOVISH BOJ APPOINTMENTS CREATE...>

MNI: ### POV: COULD DOVISH BOJ APPOINTMENTS CREATE ISSUES DOWN THE ROAD?

With Kuroda's 2nd term as BoJ Governor confirmed, it is worth looking back at

the recent BoJ appointments, as it has seemingly adopted a policy of installing

doves to the board. 

- In 2017 Suzuki & Kataoka joined, replacing Kiuchi & Sato who were noted

dissenters. Katoaka has continually argued for additional easing, with Suzuki

falling in line with consensus, however, he recently noted that "the BOJ can't

keep buying forever, so future debate is necessary." While this points towards

the need for discussion he is still much more in keeping with consensus than

either of his predecessors. The 2 newly announced Dep. Govs, Amamiya & Wakatabe,

are also dovish; Wakatabe has prev. touted an increase in the inflation target &

scale of the BoJ's QQE programme, while Amamiya is a BoJ insider.

- These appointments could create a self-sustaining ultra-loose mon pol cycle;

we know that the BoJ is scared of spooking mkts when the time comes for

normalisation & the recent run of appointments could mean that the BoJ is

willing to risk falling behind the curve when it finally pulls the trigger.