...

Japan's lower house votes for Bank of Japan nomination

Business Materials 13 March 2008 09:35 (UTC +04:00)

( dpa ) - Japan's lower house on Thursday voted for the current Bank of Japan (BOJ) Deputy Governor Toshiro Muto as the new Bank of Japan (BOJ) governor.

The decision came a day after the opposition-led upper house rejected the government-nominated Muto, 64, as the central bank chief.

Both houses of the Diet must agree on the appointment of the governor and two deputy posts.

As the current BOJ Governor Toshihiko Fukui retires from his post on March 19, Japan's central bank could suffer a leadership absence for the first time in Japan's post-war history.

In case the governor is undecided before next week, a deputy is to act as a proxy.

However, without a BOJ chief, analysts fear that Japan would be criticized for a lack of commitment to tackle problems amid spreading concerns over the global economy.

Confidence in Japanese markets and trust in the politics would dwindle, they say.

The House of Representatives has proposed Masaaki Shirakawa, a former BOJ executive director, and Takatoshi Ito, a University of Tokyo professor, as the two BOJ deputy governors.

The House of Councillors on Wednesday supported Shirakawa as a candidate but voted against Ito.

Latest

Latest