Japan parliament likely to OK BOJ board nominees

TOKYO (Reuters) - Japan's two main opposition parties on Tuesday said they would support the nominations of two prominent economists for the Bank of Japan's policy-setting board which is under pressure to take more policy steps to beat deflation.

The government earlier this month nominated the two economists after lawmakers in the opposition-controlled upper house rejected an earlier candidate for not aggressively supporting looser monetary policy.

But the opposition will now support the latest nominees, Takehiro Sato, chief economist at Morgan Stanley MUFG Securities, and Takahide Kiuchi, chief economist at Nomura Securities, with parliament expected to vote this week, lawmakers said.

Sato, a well-known BOJ watcher, has frequently criticized the central bank for not doing enough to beat deflation, while Kiuchi has taken a more neutral approach.

If the candidates are approved, the nine-member board will be at full strength for the first time since early April.

The BOJ set a 1 percent inflation target and eased monetary policy in February and April trying to convince markets of its determination to beat deflation that has dogged the world's third-largest economy for nearly a decade.

(Reporting by Rie Ishiguro and Shinji Kitamura Additional reporting by Sumio Ito; Editing by Ed Lane)