Muto: a governor-in-waiting?

Muto, currently deputy governor at the central bank, is widely accepted as the leading candidate to take over from Toshihiko Fukui, whose term expires next month.

But the matter has become a political football, with the opposition Democratic Party of Japan, who gained control of parliament's upper house in July last year, resisting his appointment due to concerns over his relationship with the finance ministry, where he was a senior official prior to joining the central bank.

Local media sources have suggested this week that the Democratic Party will back down from its opposition of Muto, and that his appointment is imminent. However, despite the growing sense that Muto will ultimately be appointed, politicians on both sides tried to challenge perceptions that it was a done deal.

On Friday, the Japanese public broadcaster reported that opposition has formally stated: "There are strong opinions within the Democratic party, opposing the idea toward promoting Muto." It remains unclear whether the party will use its majority in the upper house to veto Muto's likely nomination.

On the same day, Yasuo Fukuda, the prime minister, told reporters in Tokyo that the "government has never presented any individual names" and is waiting for the outcome of negotiations in parliament over the process for selecting a new governor.