Japan Nominates Reflation Advocate as BOJ Policymaker

Politics Society

Tokyo, Jan. 28 (Jiji Press)--The Japanese government on Tuesday presented to parliament a plan to appoint Marusan Securities Co. <8613> economist Seiji Adachi, known as an advocate of reflation through aggressive monetary easing, as a Bank of Japan Policy Board member.

Adachi, 54-year-old head of Marusan Securities' economic research department, is set to replace Yutaka Harada, 69, whose term as BOJ policymaker will expire on March 25. Harada is also an advocate of a reflationary policy.

The appointment of Adachi, who enjoys a good reputation for his research into and analyses of deflation, is expected to be approved during the ongoing ordinary session of the Diet, the country's parliament. He will serve a five-year term of office.

On Tuesday, the government submitted to the boards of the steering committees of both Diet chambers proposals to appoint 15 people, including Adachi, to posts at a total of nine institutions. These appointments require parliamentary approval to take effect.

Market participants are paying close attention to whether Adachi's joining the BOJ Policy Board will provide momentum for additional monetary easing at a time when the Japanese central bank's 2 pct inflation target remains unattained.

[Copyright The Jiji Press, Ltd.]

Jiji Press