The government nominated Bank of Japan Deputy Gov. Masaaki Shirakawa as BOJ chief Monday and former Finance Ministry bureaucrat Hiroshi Watanabe as deputy governor despite widespread speculation the latter will be rejected by the Democratic Party of Japan.
The nomination of Watanabe, a former vice finance minister for international affairs, is likely to stir more turmoil given the split within the DPJ, the largest opposition force, over whether to appoint the former Finance Ministry bureaucrat to the No. 2 slot at the central bank.
Weekend remarks by DPJ lawmakers, including party chief Ichiro Ozawa, suggested the party would reject Watanabe because of his background as a top Finance Ministry bureaucrat.