TOKYO - The Japanese government on Tuesday nominated Waseda University political science and economics professor Junko Koeda to join the Bank of Japan's nine-member board.

The appointment comes at a critical time for the BOJ, which last week raised interest rates to their highest since the 2008 global financial crisis on the view Japan was on the cusp of sustainably achieving its 2% inflation target.

Koeda would replace former economist Seiji Adachi, whose five-year term ends on March 25.

Adachi has been considered as taking a neutral approach on monetary policy and voted for the BOJ's decisions throughout his term.

Koeda, who specialises in macroeconomics and finance, previously held positions as a chief economist at the Japanese finance ministry and a staff economist at the International Monetary Fund. She has a Ph.D. degree in economics from UCLA.

Takahide Kiuchi, a former BOJ board member who is currently an economist at Nomura Research Institute, described Koeda as a scholar with a proven track record in quantitative analysis of the BOJ's monetary policy.

"She has pointed out the side effects of the BOJ's monetary easing, giving an impression that she has a neutral stance on policies," Kiuchi said, adding her appointment could enhance the quality of the board's discussions.

Prime Minister Shigeru Ishiba's first pick of a new BOJ board member has been closely watched by markets as offering clues on the administration's stance on monetary policy.

The nomination must be approved by both houses of parliament. Ishiba's minority government will need endorsement from opposition parties to get the nomination approved. 

(Reporting by Makiko Yamazaki, Yoshifumi Takemoto and Kentaro Sugiyama; Editing by Chang-Ran Kim and Kim Coghill)