Bank of Japan Adds Two Members

The two new members of the Bank of Japan’s policy board said on Tuesday that the central bank’s forecasts for a gradual end to deflation are overly optimistic and policymakers should be prepared to take new and bolder steps to boost prices.

Purchasing foreign bonds could be one future policy option as long as the central bank made it clear that it is providing liquidity and not trying to manipulate currencies, said Takehiro Sato, one of the new board members.

The government on Tuesday formally appointed Sato and Kiuchi to the board, filling seats left vacant since April. Sato was formerly chief economist at Morgan Stanley MUFG Securities, and Kiuchi worked as a chief economist at Nomura Securities.

As prominent economists, both Sato and Kiuchi have frequently urged the BOJ to take more aggressive steps to beat deflation, which has stifled Japan’s economy for much of the past two decades.

via Chicago Tribune

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza