Ryuzo Miyao, who is an academic and expert on monetary policy and the new board member of The Bank of Japan, said that as the price was falling and deflation was being expected, the central bank should keep the monetary policy very easy.

On the launch of central bank's funding operation in December, Miyao declined to comment on its effectiveness but he said that even though the economy was performing well, there were benefits of easing the policy.

"In general, keeping rates low or trying to push them down even slightly when the economy is picking up could have a simulative effect on growth", Miyao told a news conference on Friday.

Through limited policy options and with low interest rates, BOJ would struggle to get a grip on deflation and Miyao would be joining the board.

Because of the pressure from the Government, BOJ erased its ultra loose monetary policy last week. This was done by BOJ by doubling December's funding to 29 trillion Yen.

According to some market players, to meet the Government's demands for easier monetary conditions, the bank would struggle by split votes.

Naoki Iizuka, Senior Economist at Mizuho Securities, said that if any of the board member plans to expand or extend the term of three months funding tool, he would not be casting any vote.

The analyst said that the duration of funds supply would increase from three months to six months if the Government pressurizes for further steps.

This December, Miyoa's appointment was approved by the Parliament.