Governor of the Bank of Japan who cut the discount rate to 2.5 percent after the Plaza Accord
Born in Gunma Prefecture, Sumita graduated in law from Tokyo Imperial University and joined the Ministry of Finance in 1940. After heading its Banking Bureau he was administrative vice-minister in 1969–71, then president of the Export-Import Bank of Japan and deputy governor of the Bank of Japan, and was BOJ governor from 1984 to 1989. Just after the Plaza Accord he kept short-term rates high, but from 1986 he turned to large-scale easing and cut the discount rate to 2.5 percent, and he was often blamed for the easy money that fed the bubble.
Activities and affiliations
-
1940–1971
Japan state institutionsMinistry of Finance official
Economy, finance and planning -
1984–1989
Japan state institutionsGovernor of the Bank of JapanMain
Economy, finance and planning
Career Timeline
- 1940Joined the Ministry of Finance
- 1969.08–1971.06Administrative Vice-Minister of Finance
- 1979–1984Deputy Governor of the Bank of Japan
- 1984.12.17–1989.12.16Governor of the Bank of Japan