Kuroda Poised For Confirmation As BOJ Chief

TOKYO (Nikkei)--Leaders of the opposition Democratic Party of Japan decided Tuesday to back two of the government's picks to lead the Bank of Japan, virtually guaranteeing both nominees will receive Diet confirmation.

The DPJ's shadow cabinet endorsed the nominations of Asian Development Bank President Haruhiko Kuroda for BOJ governor and Hiroshi Nakaso for deputy governor. Nakaso now serves as an executive director of the central bank.

"We have a political responsibility not to create a (leadership) vacuum" at the BOJ, said DPJ policy chief Mitsuru Sakurai.

The DPJ opposes the choice of Gakushuin University economist and monetary easing advocate Kikuo Iwata for the other deputy governor post. Sakurai said the party wants to "draw a line between ourselves and the reflationists."

But Iwata has the support of a number of other opposition parties, and his nomination is expected to clear the upper house.

Nominees need the approval of both Diet chambers. The lower house, held safely by Prime Minister Shinzo Abe's ruling bloc, will vote on Thursday, followed the next day by the opposition-controlled upper house. Once confirmed, the trio would take office as soon as March 20.

The government has settled on a two-part process for installing Kuroda as the BOJ's next governor. The first stage will cover the period between incumbent Masaaki Shirakawa's resignation on March 19 and the official end of his term on April 8. The second will confirm Kuroda for a full term of five years. Shirakawa is cutting his term short to leave at the same time as the two outgoing deputy governors.

(The Nikkei, March 13 morning edition)

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