The size and type of assets the Bank of Japan now buys is not enough to achieve its 2 percent inflation target, Haruhiko Kuroda, the government's nominee for next BOJ governor, said on Monday.
Prime Minister Shinzo Abe nominated Kuroda, president of the Asian Development Bank and an advocate of aggressive monetary easing, to become the new governor of Japan's central bank in a push for bolder efforts to end nearly two decades of deflation.
Kuroda's comments suggest that under his leadership the BOJ could accelerate and possibly change the type of assets that the central bank can use to expand its balance sheet.
"The BOJ must clearly send out the message, through communication with markets, that it will do whatever it can to beat deflation," Kuroda said in a confirmation hearing at the lower house of parliament.
Japan's former top currency diplomat, Kuroda, 68, would replace incumbent Masaaki Shirakawa, 63, who is due to leave office on March 19 along with his two deputy governors.
Abe has already successfully pushed for changes at the BOJ, which doubled its inflation target to 2 percent in January and agreed to an open-ended asset buying program from 2014.
Expectations the new leadership team is expected to push for even more aggressive monetary stimulus have nudged the yen to a near three-year low against the dollar, giving the export-reliant economy some relief.
Last week Abe also nominated academic Kikuo Iwata, who supports unconventional monetary policy, and BOJ official Hiroshi Nakaso, who has hands-on knowledge of the central bank's inner workings, for the BOJ's two deputy governors.