Noticed for 'Unique Response' on First International Stage
"Ueda-san is Interesting" Also Draws Attention in Europe
Kazuo Ueda, Governor of the Bank of Japan, attracted attention by eliciting multiple bursts of laughter from the audience with his 'unconventional answers' at his first global event since taking office. Unlike other central bank governors who maintained solemnity throughout, he cracked jokes and provoked laughter with self-deprecating remarks.
On the 28th (local time), Governor Ueda participated in a panel discussion at the European Central Bank (ECB) Monetary Policy Forum held in Sintra, Portugal. Alongside Japan, the forum featured Jerome Powell, Chair of the U.S. Federal Reserve, Christine Lagarde, President of the ECB, and Andrew Bailey, Governor of the Bank of England, representing major reserve currency countries.
When asked by reporters about the recent weakness of the yen, Governor Ueda looked at the other three central bank governors and said, "Currency values are influenced by external factors," adding, "The three of you here have also had a significant impact on the depreciation of the yen."
While other advanced economies such as the U.S., the U.K., and the EU have raised their benchmark interest rates to curb soaring inflation, the Bank of Japan still maintains a negative interest rate of -0.1%. This is interpreted as the relative value of the yen falling compared to other currencies.
He also casually made jokes. When the moderator asked, "How long does it take for monetary policy to show effects?" Governor Ueda smiled and replied, "When I was a member of the Bank of Japan's Policy Board 25 years ago, the benchmark interest rate was 0.2 to 0.3%. Now it is -0.1%. So, wouldn't it take at least 25 years for the policy to take effect?" This elicited laughter from those around him.
He also showed a self-deprecating attitude about Japan's relatively slow digital transformation compared to other advanced countries. He said, "Other central banks are promoting digital currencies, but we, on the other hand, plan to issue new banknotes next year to boost trust."
When asked if he was feeling stressed these days, other central bank governors gave formal answers like "We are just doing our jobs." Currently, major central banks are facing criticism domestically and internationally for failing to keep inflation within the previously targeted 2% range.
However, Governor Ueda lamented, "I didn't realize that being a central bank governor involved so many business trips and press conferences," which caused laughter.
Governor Ueda's unique speaking style seems to be gaining attention even within Japan. The Japanese media outlet Yomiuri Shimbun introduced his remarks, saying, "Governor Ueda seems to give a different impression compared to past Bank of Japan governors," and quoted a European journalist as saying, "Mr. Ueda's talks are interesting."
Meanwhile, Governor Ueda graduated from the Faculty of Science at the prestigious University of Tokyo in 1974 and earned a Ph.D. in Economics from the Massachusetts Institute of Technology (MIT). He served as a professor in the Faculty of Economics at the University of Tokyo in 1983 and was a member of the Bank of Japan's Policy Board from 1998 to 2005. The Policy Board is responsible for deciding the Bank of Japan's monetary policy.
Governor Ueda took office as the new Governor of the Bank of Japan in April, succeeding former Governor Haruhiko Kuroda. He is also the first economist to assume the position of Governor of the Bank of Japan.
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