Japanese parliament approves appointment of easing proponent Adachi to BOJ board

Source: Xinhua| 2020-02-14 21:23:08|Editor: huaxia

TOKYO, Feb. 14 (Xinhua) -- Japan's upper house of parliament on Friday approved the nomination of Seiji Adachi as a new member of the Bank of Japan's (BOJ) Policy Board.

Adachi, 54, will take over from Yutaka Harada whose term on the board will conclude in late March.

Known as an advocate of aggressive monetary easing, Adachi will join the nine-member BOJ Policy Board as a proponent of its ultra-easy monetary policy aimed at pulling the nation out of its decades-old deflationary quagmire.

"The policy mix of fiscal expansion by the government and government-bond purchases by the BOJ is necessary to pull the country out of deflation," Adachi said in a book published after Japan raised its consumption tax from 8 percent to 10 percent on Oct. 1.

The Bank of Japan, at the conclusion of its most recent Policy Board meeting, opted to maintain its ultra-low interest rates and upgraded its economic forecasts despite a backdrop of largely stagnant inflation, well below the bank's 2 percent target.

Japan's central bank voted to keep unchanged its short-term interest rate at minus 0.1 percent and guide long-term yields at close to zero percent.

In a recent report issued by the central bank, it said it had upwardly revised its forecasts of rises in real gross domestic product for fiscal 2020 and 2021 from 0.7 percent and 1.0 percent, to 0.9 percent and 1.1 percent respectively.

In addition, for each of the three years through fiscal 2021, however, the BOJ lowered its inflation forecast by 0.1 point.

The bank said it now forecasts core consumer prices to increase 0.6 percent in fiscal 2019, 1.0 percent in fiscal 2020 and 1.4 percent in fiscal 2021, with the figures still coming in well below the BOJ's lofty price stability goal of 2 percent.

Adachi, an economist who has worked at a number of financial institutions including Marusan Securities Co. and Deutsche Securities Inc., was approved for the post on the BOJ's board by Japan's lower house of parliament on Thursday.