A man wearing a protective mask walks past the Bank of Japan headquarters amid the coronavirus disease (COVID-19) outbreak in Tokyo, Japan, May 22, 2020.REUTERS/Kim Kyung-Hoon/File Photo

TOKYO, July 25 (Reuters) – The Bank of Japan has shuffled its board and recruited a new member seen as more keen on ending ultra-low interest rates than its dovish predecessor, which could push the Board of Governor Haruhiko Kuroda’s aggressive monetary easing. Politics.

Former private economist Hajime Takata, and another newcomer Naoki Tamura who comes from a commercial bank, will hold a joint inaugural press conference at 5 p.m. (0800 GMT) on Monday, following their official appointments by the government the day before.

They replace Goushi Kataoka, a former economist who was a strong advocate of aggressive monetary easing, and former commercial banker Hitoshi Suzuki, whose five-year terms ended July 23.

The reshuffle comes ahead of a change in the BOJ’s leadership when Kuroda’s second five-year term ends in April next year. The terms of his two deputies will also expire in March.

Takata, a bond market pundit, is seen by markets as more willing to reverse Kuroda’s protracted and massive stimulus package, which has been hailed for boosting growth but criticized for causing market distortions.

He once wrote in a research note that the BOJ could come under pressure to consider exiting its ultra-loose policy if the European Central Bank (ECB) follows in the footsteps of the US Federal Reserve in withdrawing monetary stimulus.

This view contrasts with its predecessor Kataoka, which has consistently offered to step up the stimulus by reinforcing the BOJ’s commitment to ultra-low rates.

Last week, the ECB raised rates for the first time in 11 years, joining a wave of central banks tightening monetary policy to tackle soaring inflation. Read more

This left the BOJ among the few remaining central banks to keep its money tap wide open. Kuroda last week reiterated his determination to keep interest rates extremely low, following the widely expected decision by the BOJ to maintain extremely accommodative monetary policy. Read more

Reporting by Leika Kihara; Editing by Christopher Cushing and Edmund Klamann

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