The headline says yes, but the body says not yet

The FT’s David Pilling reports that the DPJ will accept the government’s nomination of Muto Toshiro, currently the BOJ’s deputy governor, to serve as Fukui Toshihiko’s successor as BOJ governor.

At least that’s what one might think from the headline: “Japanese opposition to accept new bank chief.”

The body of the article, however, indicates that while the DPJ has softened its opposition, it has yet to assent officially to the government’s nomination.

In fact, Ozawa Ichiro, DPJ president, insisted over the weekend that the DPJ’s position is “blank” — he will respect the decision of the party’s investigatory subcommittee on joint personnel decisions. Sengoku Yoshito, the subcommittee chairman, emphasized the need for a proper debate on Mr. Muto’s elevation to the bank presidency.

It’s perhaps a little hasty to assume that Mr. Muto is set to assume control next month. I expect that the DPJ will ultimately assent — as the FT article makes clear, the DPJ’s objections are flimsy — but I suspect it will not do so until it has made its point to the government about the need to share power properly, especially in an area like this in which the constitution mandates a role for the House of Councillors.

UPDATE: Definitely read Jun Okumura’s post on this debate.

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