The Asahi Shinbun reports today that the DPJ has formally decided to oppose the LDP candidate for next Governor of the Bank of Japan, Toshiro Mutou (currently BoJ Deputy Governor). Other opposition parties are expected to vote with the DPJ against an LDP motion in the (opposition-dominated) Upper House, which means it will be sent back to the Lower House. The government have indicated they are considering whether to resubmit the motion backing Mr. Mutou.
The opposition parties view Mr. Mutou as someone who was deeply involved in implementing policies that have created the so-called ‘rich-poor divide’, mainly during former PM Koizumi’s administration; there is also a feeling that he is not a suitable candidate to guarantee the political independence of the BoJ from the Finance Ministry. PM Fukuda said in his daily press conference, “We’re in a tricky situation. The candidate (presented to the Upper House) has a good reputation and the support of experts and economists. I simply cannot understand the reason for their (DPJ, etc) opposition. It’s a real problem.”
There is now a possibility that the Bank of Japan may be Governor-less for a period of time after incumbent Toshihiko Fukui steps down on 19th March.
