DPJ sources said the party is set to give the nod to BOJ
governor nominee Haruhiko Kuroda as well as Nakaso for one of the deputy governor posts but may reject Iwata, a strong advocate of bolder monetary easing to achieve the 2 percent inflation target.
The government may ask the BOJ
to do more to beat deflation, such as by reverting to quantitative easing or implementing some form of credit easing.
Foreign investors, encouraged by the appointment of a new, more flexible BOJ
governor and a very "soft-landing" type of bailout for Resona Bank in May, began to suspect that the BOJ
's increasingly large and overt interventions in the currency markets were also not being sterilized (i.
In other words, in the context of our discussion of necessary supply-side reform, it is not only unrealistic to expect the BOJ
to provide the solution; it might also be unrealistic to expect the BOJ
to stop being part of the problem.
DPJ sources say the party is set to give the nod for the former vice finance minister for international affairs to head the BOJ
Fukui wants the BOJ
to exert a direct impact on the bad loan problem, possibly through its bank examination authority.
The government proposed to the Diet on Thursday the appointment of Kuroda, an advocate of aggressive monetary easing, as the next central bank chief, and Iwata and Nakaso as next BOJ
At a quarterly meeting of the central bank's regional managers last week, BOJ
Governor Masaaki Shirakawa said the BOJ
will proceed with monetary easing in a continuous manner, while warning that the risk of the impact of Europe's debt problems spreads to the world's third-biggest economy.
2 executive, said last month the party believed the government should not interfere in monetary policy and would respect BOJ
As one BOJ
official put it in private, "These firms are already dead.
Aso also indicated that he does not want Prime Minister Shinzo Abe to pick as the new BOJ
chief someone with no experience of managing an organization, such as a scholar.
In an auction, the BOJ
offered to buy 600 billion yen (about $7.