With Bank of Japan Gov. Toshihiko Fukui's term expiring in 11 days, the government and ruling bloc on Friday finally nominated one of his deputies, Toshiro Muto, to replace him at the central bank.
The long-expected nomination, submitted to the Diet for approval, puts the ball in the high-stakes dispute in the court of the Democratic Party of Japan, the largest opposition force.
However, DPJ Secretary General Yukio Hatoyama said Friday afternoon that it would "not be easy" for the party to accept Muto's nomination. DPJ lawmakers have earlier indicated the party, for the sake of ensuring the independence of the monetary policy body, is against promoting a former vice finance minister to BOJ governor.