Appointing a woman to the Bank of Japan’s top brass would help with promoting gender diversity across the country, according to Takako Masai, a former member of the central bank board.
(Bloomberg) — Appointing a woman to the Bank of Japan’s top brass would help with promoting gender diversity across the country, according to Takako Masai, a former member of the central bank board.
As speculation heats up over the new BOJ leadership and the changes that may bring, Masai also said the bank may need to verify the feasibility of policy normalization before it moves in that direction.
Economists increasingly expect a female candidate to be in one of the BOJ’s most senior positions this spring. If a woman is chosen, it will “send a big message” to Japanese companies and organizations to promote gender diversity, Masai said in an interview. “It would be great if the appointment could provide a sort of catalyst,” she said.
The BOJ is expected to replace Governor Haruhiko Kuroda in April and his two deputies in March. Most economists are now betting one of the deputies will be Yuri Okina, a former BOJ official and chair of the Japan Research Institute.
Prime Minister Fumio Kishida said he will submit his nominations to the Diet this month.
Masai, who currently chairs the SBI Financial and Economic Research Institute, served as a member of the BOJ policy board until 2021. She was the sole woman among the nine board members during her five-year term.
Looking back on her tenure, Masai said she never felt any barriers in the male-dominated central bank. She recalls that authority was clearly defined by position, and the structure did not allow others to get in her way. It may be easier to promote diversity in public institutions than in the private sector, Masai said.
Read more: Japan to Lag Again on Diversity if Women Shut Out of BOJ Race
Still, economists don’t see a woman being appointed governor, which means the BOJ will continue to lag behind global peers when it comes to gender diversity.
Looking further ahead, Masai pointed out the bank may need to confirm whether it can actually normalize monetary policy before it starts heading toward an exit. Given the concerns over a global recession, the BOJ would need to know that there will be domestic demand-led growth, the former board member said.
Masai also highlighted the importance of communicating with markets, and looking carefully at price developments.
“The shape of inflation is now different, but I don’t think the BOJ has come to a conclusion about whether this is temporary, or it has permanently changed,” she said.
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