Tuesday, May 26, 2015Tuesday, May 26, 2015

Muto leads as Japan PM close to choosing nominee for BOJ chief

Published on Feb 18, 2013 9:16 AM

TOKYO (REUTERS) - Former top financial bureaucrat Toshiro Muto is the leading candidate to become Japan's next central bank governor with Prime Minister Shinzo Abe to pick a nominee as early as this week, sources close to the process told Reuters.

The choice of Mr Muto, 69, would suggest the Bank of Japan (BOJ) will intensify stimulus efforts to reflate the economy, which has struggled with deflation for years, but refrain from the more radical measures advocated by other candidates.

Some policymakers and government officials worry that radical measures could unsettle markets.

A sharp yen decline since Mr Abe started pushing for bold BOJ measures has already sparked global criticism of Japan's policies.

Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!