Japanese government to propose new candidate for central bank head
( dpa )- The Japanese government is set to propose a new candidate in the ongoing battle over the country's next central bank chief on Monday, the Kyodo news agency reported.
Members of the ruling Liberal Democratic Party (LDP) are to nominate former Toyota chief Hiroshi Okuda to be the governor of the Bank of Japan, Kyodo reported, citing party members.
The opposition Democratic Party of Japan (DPJ) used its majority in the upper house of the Diet to last week block the nomination of Toshiro Muto, who is currently the bank's vice-governor, fearing he would not be able to keep BOJ's independence because of his close ties with the government as a former vice finance minister.
With the current BOJ Governor Toshihiko Fukui set to retire from his post on Wednesday, 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, 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.