Muto rejected as potential governor of Bank of Japan

by Richard Kilner

Story link: Muto rejected as potential governor of Bank of Japan

The Japanese government’s preferred choice to succeed Toshihiko Fukui as governor of the Bank of Japan, Toshiro Muto, has been rejected by the Democratic Party, the strongest opposition party.

Muto is presently the deputy governor of the central bank, and is considered to be Fukui’s own choice for his successor.

However, Muto was bound to be a contentious choice. The central bank has only been independent from government for ten years, and his former position within the Ministry of Finance had caused significant unease with the opposition.

The new governor must have the backing of both government and opposition, as the opposition controls the upper house of Japan’s Parliament.

The Democratic Party has also rejected Takatoshi Ito as a potential governor.

However, they have given their backing to Masaaki Shirakawa, once an official with the Bank of Japan.

Fukui’s term of office ends on 19 March, so time is of the essence when selecting his replacement.