Fukuda stands by his BOJ nominee

Opposition politicians think Mr Muto is too close to the government

Japanese prime minister Yasuo Fukuda has said he has no plans to put up another candidate to be Bank of Japan governor, despite the risk of defeat.

Mr Fukuda nominated Toshiro Muto, now a deputy governor, to replace Toshihiko Fukui when he retires on 19 March.

But some opposition politicians say the appointment of Mr Muto, who is a former deputy finance minister, would threaten the central bank's independence.

Parliamentary hearings to question Mr Muto begin on Tuesday.

"I have no plan to submit new candidates. I put forward what I thought would be the best candidates," Mr Fukuda said, referring to Mr Muto and the two nominees for the deputy governorships: Masaaki Shirakawa and Takatoshi Ito.

The appointments must be ratified by both houses of parliament, which is a problem because there is an opposition majority in the upper house.

A temporary governor may be appointed if a new one has not been agreed by the time Mr Fukui steps down, but given current concerns about the state of the Japanese economy, there will be concern if there is not a permanent governor in place.

E-mail this to a friend

Printable version