Political scrap over governor may embarrass Japan

A spat between Japan's two main political parties is threatening to undermine the central bank's credibility by leaving it without an official governor when Toshihiko Fukui's term expires in the middle of next month.

Local media reports have said that the ruling Liberal Democratic Party is set to delay its nomination of Toshiro Muto, now a deputy governor at the Bank of Japan, for at least the second time until next week.

The Liberal Democratic Party fears Muto's nomination could be rejected by