Governor Haruhiko Kuroda will end his term in April
Investors hope the governor's new successor is a hawkish one.
The Japanese government has reportedly proposed Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya to replace Haruhiko Kuroda as central bank governor.
For reference, Haruhiko Kuroda will end his term in April and markets expect the central bank to exit loose monetary policy when the new governor takes over.
However, that hope was dashed by reports that Amamiya might replace Kuroda.
Why does the market not like Amamiya?
This is because, Amamiya is considered by the market to be more dovish than the other candidates Hiroshi Nakaso and Hirohide Yamaguchi.
He is also known as 'Mr.BOJ' for playing an important role in designing Kuroda's asset purchase program in 2013.
That streak, he is expected to be inclined to continue stimulus measures if appointed as the new Governor of the BOJ.
Even so, Prime Minister Fumio Kishida said he would continue to consider the best candidate for the position, indicating that no final decision had been made.
