Muto out; DPJ floats two names for BOJ
Like foiled pick, both ex-Finance
Prime Minister Yasuo Fukuda ruled out Sunday proposing once-rejected Toshiro Muto as the next Bank of Japan governor, sources in the Democratic Party of Japan said, while the DPJ floated two names it may accept as the top central banker.
Earlier in the day, DPJ Secretary General Yukio Hatoyama indicated during a TV program that the DPJ may approve Haruhiko Kuroda, president of the Asian Development Bank, or Hiroshi Watanabe, special adviser to the Japan Center for International Finance, as the next BOJ governor.
Last Wednesday, the opposition-controlled House of Councilors voted down the Liberal Democratic Party-New Komeito ruling bloc's nomination of Muto, while the House of Representatives, where the ruling camp holds a majority, endorsed his candidacy the following day.
The opposition parties argue Muto's past stint as vice finance minister, the top bureaucrat at the ministry, would hurt the BOJ's independence from the government in policy decisions, despite his vow to the contrary.
The Japan Times: Monday, March 17, 2008
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