The Japanese government may withdraw its latest nominee for the central bank's policy board and begin a search for a new candidate, local media reported Tuesday.
The lower house of parliament, controlled by Prime Minister Yasuo Fukuda's Liberal Democratic Party, approved Keio University professor Kazuhito Ikeo earlier this month to fill one of two vacancies on the board. But his nomination is likely in jeopardy after a turnabout by the largest opposition party, according to the Mainichi newspaper.
The Democratic Party of Japan, which effectively controls the upper house, had initially agreed to back Ikeo. It shifted gears after the People's New Party said it opposed Ikeo for his support of postal privatization and threatened to cut its alliance with the DPJ, the Mainichi said.
A DPJ spokesman, who refused to give his name because he was not authorized to speak to the media, said he could not comment on the report and declined to provide details on the party's current stance on Ikeo's nomination.
Two seats of the nine-member policy board have been empty since early April, amid continuing political wrangling over who should steer monetary policy through growing concerns about a global economic slowdown.
Lawmakers fought over various candidates for the central bank chief after the five-year term of former governor Toshihiko Fukui ended March 19. Gov. Masaaki Shirakawa, the third government candidate for the top job, took office in April after serving briefly as interim chief.
The bank's key interest rate has been at 0.5 percent since early 2007, and most analysts expect it will remain there into next year.
No comments:
Post a Comment