New Bank of Japan governor to be named soon

by Richard Kilner

Story link: New Bank of Japan governor to be named soon

Toshihiko Fukui holds his final meeting as governor of the Bank of Japan today.

The two day gathering of the policy board will consider whether to change interest rates, though it is widely expected they will remain unchanged.

Fukui’s successor is thought to be announced on Friday by the Japanese government.

Toshiro Muto is seen as the government favourite. Presently the deputy governor, he has also served in the Ministry of Finance, a fact which could provoke opposition parties into blocking his appointment.

A second deputy governor, Yutaka Yamaguchi, is thought to be favoured by opposition parties.

Because the opposition is the dominant force in the upper house their agreement to the new governor is essential.

With Fukui’s term of office ending on 19 March, the prospect of a vacant seat at the central bank’s leadership has caused concern for Prime Minister Yasuo Fukuda.

The need for a replacement approved of by both houses in Parliament has meant that Muto’s position as the government’s preferred man is uncertain.