Japan opposition still opposes Muto for BOJ - NHK
TOKYO, Feb 22 (Reuters) - There is strong antagonism among opposition politicians towards Bank of Japan Deputy Governor Toshiro Muto becoming the next central bank chief, a senior lawmaker from Japan's main opposition Democratic Party was quoted as saying.
Ruling Liberal Democratic Party lawmakers told Kenji Yamaoka, parliamentary affairs chief of the Democratic Party that views were growing within the ruling coalition that Muto should succeed BOJ Governor Toshihiko Fukui, who retires on March 19, Japanese public broadcaster NHK reported on Friday.
Yamaoka was quoted as responding to them on Thursday night: "There are strong opinions within the Democratic party, opposing the idea toward promoting Muto, who was once a vice finance minister. Other opposition parties are also against him."
Splits within the opposition about whether to promote Muto to the top job have been around for months, with conflicting messages on whether the opposition-controlled upper house of parliament will accept or veto a nomination of Muto as governor.
However expectations are growing that the Democratic leadership will eventually endorse Muto, an elite bureaucrat turned central banker, so as not to create confusion in volatile financial markets in the wake of the subprime crisis and with fears of a U.S. recession growing.
The governing coalition had been expected to put forward its nomination for BOJ governor and two deputies this week but has been locked in talks with opposition parties about the process of nomination and whose names should go forward. Japanese media say the issue will likely now come to a head next week.
NHK reported the government was still trying to get acceptance of Muto as they saw no other appropriate candidate.
Some in the Democratic Party have voiced opposition to Muto, saying a former senior official in a fiscal authority should not head the central bank as there should be a clear separation between monetary and fiscal policy. (Reporting by Yoko Nishikawa; Editing by Rodney Joyce)
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