TOKYO (Reuters) – Bank of Japan Deputy Governor Hiroshi Nakaso became the first central bank executive in seven years to join a government panel on fiscal policy, underscoring the role its massive monetary stimulus plays in reining in Japan’s huge fiscal debt.
The finance ministry on Saturday announced the appointment of Nakaso, a career central banker with expertise in markets.
The panel, which advises the government on long-term fiscal and budget polices, includes business executives and academics.
The government will take into account the panel’s proposals when drafting the budget and reviewing each year its long-term strategy for repairing Japan’s tattered finances.
Nakaso will be the first deputy BOJ governor to join the panel since Kiyohiko Nishimura, who was a member until 2010.
The BOJ has said its massive stimulus program, including a pledge to keep bond yields capped around zero percent, is aimed at reviving a stagnant economy and accelerating inflation to its 2 percent target.
But the central bank’s ultra-loose monetary policy has also helped keep low the cost of financing Japan’s huge public debt which, at double the size of its economy, is the largest among advanced economies.
(Reporting by Takashi Umekawa; Writing by Leika Kihara; Editing by Richard Borsuk)