Muto may still be in the running for BoJ top post

TOKYO: Japan's main opposition Democratic Party of Japan would not automatically reject former top financial bureaucrat Toshiro Muto as the next Bank of Japan governor if his name is proposed, DPJ shadow finance minister Seiji Maehara said.

Maehara also said yesterday it was undesirable to have a top central banker who held extreme views about reflating the economy, but he declined to specify which potential candidates fell into that category.

He added that he was in favour of easier monetary policy.

"I am not saying that Muto is OK, but just because we rejected him five years ago does not mean we will automatically say 'no' this time," Maehara said.

He did not give a direct answer when asked whether all members of the often-fractious party would agree with him.

Prime Minister Shinzo Abe has made clear he wants to replace outgoing BoJ governor Masaaki Shirakawa, who steps down with two deputies on March 19, with someone who agrees with his push for aggressive monetary policy easing to escape persistent deflation.

The Democrats will evaluate candidates for the three BoJ posts as a package, which should include a policy expert, a former government official and an ex-BoJ official, Maehara said. Reuters