Japan GDP grew 0.2% qoq in Q4, below expectation of 0.5% qoq. In annualized term, GDP rose 0.6%, below expectation of 2.0%. GDP deflator rose 1.1% yoy, matched expectations. For the full year of 2022, GDP expanded 1.1%, slowed from 2021’s 2.1%.

Economy Minister Shigeyuki Goto said after the release, “Rising inflation and the global slowdown are risks… But corporate spending appetite hasn’t cooled … we’re not too pessimistic about the outlook.”

Finance Minister Shunichi Suzuki said, “With global monetary tightening continuing, the slowdown in overseas economies could still drag on Japan’s economy as well. We also need to pay attention to the impact from inflation, supply constraints, volatility in financial markets and the spread of Covid cases in China.”

Separately, it’s confirmed that the government nominated Kazuo Ueda as the next BoJ Governor, when Haruhiko Kuroda’s term ends on April 8. Ueda is a 71-year-old former BoJ board member and an academic at Kyoritsu Women’s University.

Yen jumped earlier today on reports that Prime Minister Fumio Kishida is going to make a surprised nomination of academic Kazuo Ueda as the next BoJ Governor. Some interpreted that as a signal of a change in BoJ’s course for finally exiting ultra loose monetary policy.

However, Yen was then shot down after Ueda told Nippon TV BoJ’ current policy is “appropriate”, noting the need to continue with monetary easing. Ueda also noted, “it’s important to make decisions logically and explain clearly

Ueda, a former member of the BOJ’s policy board and an academic at Kyoritsu Women’s University. On the other hand, earlier rumor of appointing Deputy Governor Masayoshi Amamiya was seen as a sign of continuing currency policies.

The government is expected to present the nomination on February 13 and there would be hearings at the lower house on February 24.

Japan Finance Minister Shunichi Suzuki said that the goals as mentioned in the joint statement with BoJ signed back in 2013 “remains important policy challenges”. He mentioned that targets like “the need to pull Japan out of deflation and achieve stable economic growth.”

But he also mentioned the possibility of revising the join statement with new BoJ Governor. “What to do with the statement is something the government must discuss with the new governor,” Suzuki told parliament. Nevertheless, it’s premature to decide whether it’s necessary for the revision as the government has yet to nominate the new BoJ head.

Separately, Tsuyoshi Takagi, the ruling Liberal Democratic Party’s parliament affairs chief for the lower house, said that the government will present its nomination for the new BoJ Governor and the two deputies on February 13. Jun Azumi, an executive of the opposition Constitutional Democratic Party of Japan said hearings would be held at the lower house on February 24.