Prime Minister Junichiro Koizumi on Monday nominated former Bank of Japan Deputy Gov. Toshihiko Fukui, who is not considered an aggressive deflation fighter, as the new BOJ chief, according to government sources.
The sources said Koizumi also named as deputy governors two people who have urged the central bank to act more aggressively: Toshiro Muto, former vice minister of finance, and Kazumasa Iwata, a senior official at the Cabinet Office and an economics professor at the University of Tokyo.
The long-awaited appointments come at a critical time for the economy as prices continue to fall, eating into corporate profits and depriving people of jobs.