"Automobiles
are the mainstay of Japan's exports to the U.S. As such, we can't have
any preset idea on the impact (of U.S. tariffs) until a deal is struck,"
he told a press conference after being officially appointed by the
government to join the nine-member board.
Masu, a former chief financial officer of trading house Mitsubishi Corp (8058.T) ,also said he agreed with the BOJ's view that underlying inflation, or
price moves driven by strength in domestic demand, remained short of its
2% target.
"It's
true real interest rates are negative. But given recent economic
developments, the BOJ shouldn't be in a rush to raise rates," he said,
stressing the need to tread cautiously in rolling back the bank's
massive stimulus.
Masu
joins the BOJ as U.S. President Donald Trump's decision to impose
sweeping tariffs worldwide, including on Japan, complicates the central
bank's plan to continue raising interest rates from still-low levels.
He replaced former Hitachi (6501.T) executive Toyoaki Nakamura, who was seen as among the most dovish members of the central bank's board.
Masu
said he was "probably right in the middle" with no strong bias, when
asked whether he would brand himself as hawkish or dovish on monetary
policy.
The
BOJ exited a radical stimulus programme in March last year and raised
interest rates to 0.25% in July and to 0.5% in January on the view that
Japan was on the cusp of sustainably achieving its 2% inflation target.
While
the central bank has signalled readiness to raise rates further,
Governor Kazuo Ueda said rate hikes would be put on hold until there was
more clarity over the impact of U.S. tariffs.
The
board reshuffle may influence the BOJ's discussion on economic and
price developments particularly with the departure of Nakamura, who
voted against the BOJ's decision to end negative rates and the two rate
hikes. Nakamura left the board after his five-year term ended on June
30.
Masu's
appointment followed that in March of Junko Koeda, an academic known as
a fiscal and monetary hawk who succeeded another dovish member - a pick
analysts described as tipping the board increasingly in favour of slow
but steady rate hikes.
Reporting by Leika Kihara; Editing by Andrew Heavens and Raju Gopalakrishnan
