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BOJ nominee offers `independence,' but opposition unmoved

The government's choice for the next Bank of Japan (BOJ) governor said yesterday he would strive to protect the central bank's independence if the opposition dropped its resistance to his nomination, but the opposition was unmoved.

His pledge came amid continued deadlock between the two main political parties over who will take the helm of the BOJ amid a global credit crisis and just a day before the post is due to fall vacant.

"If I were offered an opportunity to assume the important post of BOJ governor, I would do my utmost to have an appropriate monetary policy while securing independence and transparency," Koji Tanami told a parliamentary hearing.

The opposition Democratic Party's refusal makes it inevitable that the central bank will lack a top leader -- at least briefly -- when the current governor's term ends today.

The opposition has been urging the government to pick someone not politically connected to the nation's powerful bureaucracy to ensure the independence of the BOJ.

Earlier yesterday, the government nominated the former top finance ministry official, who is now head of Japan's main foreign aid agency.

The ruling coalition had to come up with a new name after the opposition voted down its first choice of Toshiro Muto, currently a Bank of Japan deputy, saying he was too cozy with the government.

The new bank chief must be approved by both the houses of parliament.

The political rift has raised fears of a leadership vacuum in the midst of a global financial market turmoil.
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