Newly appointed Bank of Japan board members said Monday they will see if the central bank's monetary easing can ensure a virtuous cycle of economic growth and higher wages that support stable inflation while paying attention to its side effects.
Hajime Takata, an economist who had warned of the pitfalls of protracted easing, and veteran banker Naoki Tamura, however, refrained from saying if they were aggressive or cautious on monetary easing, in their first news conference since taking their posts Sunday. The two will serve five-year terms.
The selection by the government of Takata to the nine-member board, in particular, has fueled speculation among market participants that it is a harbinger of a less dovish BOJ. He replaced Goshi Kataoka, an economist known as a reflationist who has pushed for more monetary easing to spur economic growth.