TOKYO, July 1 (Reuters) - The Bank of Japan's new board member, Yukitoshi Funo, said on Wednesday policy makers need to take a flexible approach and respond to changes in the economy in trying to reach the central bank's 2 percent inflation target.
Achieving the 2 percent inflation target is important, but it is also important that the economy is performing well, Funo told a news conference upon joining the nine-member board on Wednesday.
Funo also said Japan is making progress in escaping deflation but has not sufficiently emerged from deflation.
Parliament approved the government's nomination of Funo, a former Toyota Motor Corp executive, in May. He replaced Yoshihisa Morimoto, a former utility executive who voted against last year's surprise monetary easing.
Funo's first policy-setting meeting will be on July 14-15, when the board conducts a quarterly review of its long-term economic and price forecasts.
(Reporting by Leika Kihara and Stanley White; Editing by Chris Gallagher)