In a move that may symbolize the central bank's new transparency, newly appointed members of the Bank of Japan Policy Board on Wednesday clearly expressed their opinions about interest rates and the economy.
"If the economy worsens or the financial system becomes unstable, of course, a further easing of the monetary policy should be considered," said Nobuyuki Nakahara, former honorary chairman of a major oil refiner. "We would have to do it if it is judged to be effective." But, he said, it will be difficult to raise the 0.5 percent official discount rate "in the foreseeable future," considering the sluggish demand -- a view also expressed by Gov. Masaru Hayami.
Traditionally, Policy Board members other than the governor rarely give their opinions in public. The news conference was the first for board members since the new BOJ Law took effect Wednesday. Transparency of monetary policymaking and independence from the government are two pillars of the new law.