Japan’s government will appoint a new BOJ governor soon
The Japanese government will announce the next Bank of Japan governor soon. Thus far, polls indicate that academic Kazuo Ueda might take up the post. On Friday, two government officials noted that the central bank could change its ultra-easy policy and hike interest rates if Ueda becomes governor. In this case, Japan would finally align with other major economies. The latter has already been rising rates for over a year.
Ueda is a former BOJ policy board member. He is also an academic at Kyoritsu Women’s University. Economists consider him an expert on monetary policy. As a result, he might be an excellent choice in this case. Furthermore, Ueda played a crucial role in bolstering the country’s economic recovery when it struggled after the coronavirus pandemic. He also offered forward guidance for financial markets.
The officials’ comments prompted the Japanese Yen and bond yields to surge forward today. The other candidate is BOJ Deputy Governor Masayoshi Amamiya, who is known for his dovish views. However, Ueda announced later that the Bank of Japan made the right decisions and that it should keep its current policy in the coming months. He also added that the government was still contemplating who would get the governor’s post.
After this news, market sentiment soured, and the Japanese Yen plummeted. Investors and traders want the BOJ to start hiking rates. They hoped that it would happen when the new governor took the post in April. Current governor Haruhiko Kuroda’s second term ends then.
The Bank of Japan has been buying bonds for several years now, and that has distorted the country’s bond markets. That’s why investors thought that policy change was necessary.
Meanwhile, robot orders hit a record high in North America
In 2022, the North American labor market tightened the most in decades. The companies struggle to hire workers, still trying to recover in the post-pandemic environment. In the absence of human labor, they have to depend on robots to do the job. Consequently, last year, the company brought on more robots than ever before. Reports showed the companies are building new battery factories and electric vehicles.
However, by the end of 2022, demand for robots has decreased. Thus, analysts now contemplate whether demand will strengthen this year or remain low compared to last year. Governments are trying to hinder soaring inflation, but it’s still rising. High prices weigh on household consumption as people have to carefully plan their purchases.
Still, in the United States, Canada, and Mexico, the companies ordered over 44,100 robots last year. That is 11% more than the previous year’s orders. The Association for Advancing Automation reported that the total value of those machines is $2.38 billion.
Jeff Burnstein, the president of A3, noted that the labor shortage continues, and many firms struggle to find workers. Thus, robots offer a quick and easy solution. However, he also added that at the end of the year, the number of orders decreased significantly. Thus, he’s unsure how the situation will evolve this year. Burnstein thinks that coronavirus pandemic-era consumer behavior is changing, and that also accounts for the drop-off in orders.
