Japan's government on Thursday nominated Haruhiko Kuroda, an advocate of aggressive monetary easing, as the next Bank of Japan (BOJ) governor in a move that could see radical central bank policies push the economy out of a rut.
Kuroda, currently the head of the Asian Development Bank, would replace Masaaki Shirakawa, who steps down as BOJ chief on March 18.
Japan's government also nominated BOJ official Hiroshi Nakaso and economics professor Kikuo Iwata, who is also a proponent of aggressive monetary policy, to the two deputy governor posts at the central bank.
Analysts said that Kuroda and Iwata joining the Bank of Japan would mark an important step in "Abenomics" – the phrase now used widely to describe the economic policies of Japan's Prime Minister Shinzo Abe.
(Read More: Markets Just Can't Get Enough of the Abe Trade)
"The point is that the Bank of Japan is a failed central bank – it has failed to deliver price stability," said Shane Oliver, head of investment strategy at AMP Capital. "Kuroda's nomination should mark the next phase of monetary policy. He is known to be a dove so we should see a pick-up in asset purchases."
Since November, just before elections in December that bought the ruling Liberal Democratic Party (LDP) to power, Abe has pushed for bold measures and an aggressive monetary policy to revive the Japanese economy, which is in recession and plagued by years of deflation.