By Megumi Fujikawa
TOKYO--The newest member of the Bank of Japan's policy board pledged to carefully watch the impact of a weak yen on prices, though she didn't give any clear hints on her monetary policy stance.
"There is some evidence emerging that suggests currency fluctuations are having a larger impact on prices than before," Ayano Sato said Tuesday at her first news conference as a BOJ policymaker.
"As the Bank of Japan's goal is to achieve its 2% price stability target in a sustainable and stable manner, it is necessary to closely and carefully monitor developments in both foreign-exchange rates and prices," she said.
Sato is a former university professor and an expert in finance and economics. Having been picked by Prime Minister Sanae Takaichi--who is widely seen as favoring loose monetary policy--Sato is perceived by market participants as potentially adding a more dovish tone to policy discussions.
While inaugural remarks from BOJ members usually don't contain much in the way of noteworthy signals, these comments could be scrutinized more closely than usual as observers hunt for any clues on whether Japanese authorities will move to mitigate the impact of the yen's depreciation on prices. The yen has touched its weakest level in nearly 40 years against the dollar.
Before taking the position, Sato said a weak yen would be broadly positive for the Japanese economy and wrote a chapter for a book about the high-pressure economy.
Sato said Tuesday that, generally speaking, a weaker yen boosts exporters' profits and inbound tourism, while it adds burdens on households and smaller businesses by increasing import costs.
The BOJ raised its policy rate to a 31-year high of 1% earlier this month amid growing concerns about the possibility that underlying inflation will exceed the bank's 2% target.
BOJ policymakers expect the effects of higher oil prices to transfer to consumer prices around the summer.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com