DPJ to vote for Kuroda as new BOJ chief but will oppose Iwata as deputy

The Democratic Party of Japan said Tuesday it will support Asian Development Bank President Haruhiko Kuroda as the next Bank of Japan governor but will oppose Gakushuin University professor Kikuo Iwata's nomination as one of the two BOJ deputy governors because of his extreme stance on monetary policy.

The endorsement by the DPJ, the largest opposition force, of the ruling Liberal Democratic Party's choice of Kuroda to succeed incumbent BOJ Gov. Masaaki Shirokawa paves the way for the Diet to vote him in later this week. Kuroda is an advocate of strong monetary easing to fight deflation.

But the DPJ's "shadow Cabinet" will reject Iwata because of his extremist stance, party lawmakers said.