Japan's lower house approves Hitachi exec Toyoaki Nakamura to join Bank of Japan board

Japan's lower house on Tuesday approved Toyoaki Nakamura, a Hitachi Ltd executive, to join the Bank of Japan's nine-member policy board, paving the way for parliamentary approval of the government nominee.

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Nakamura, 67, would replace Yukitoshi Funo, a former Toyota Motor Corp executive who holds a neutral policy stance. If approved by the upper chamber, which looks certain, Nakamura would begin his five-year term on July 1.

About half the respondents in a Reuters poll of economists expected the BOJ to ease further later this month, following its easing of corporate funding strains in March to calm markets jolted by the coronavirus pandemic.

Nakamura's addition is seen as unlikely to tip the balance of the board, as members who hailed from the corporate sector in the past tended to vote with the majority of the board.

The central bank's board is currently split between those who see room to increase stimulus, and those more worried about the rising cost of prolonged easing, particularly the hit to banks' profits from years of ultra-low interest rates.

Nakamura's policy-meeting debut would be on July 21-22, when the BOJ issues a quarterly report of its long-term economic and price projections.