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Japan govt nominates Ikeo for BOJ board -lawmaker

Wed May 28, 2008 9:53pm EDT

(For more stories on Japan's economy click [ID:nECONJP])

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TOKYO, May 29 (Reuters) - The Japanese government nominated economics professor Kazuhito Ikeo as a member of the Bank of Japan's rate-setting policy board on Thursday, an opposition lawmaker said.

The nomination comes after the opposition bloc had rejected government plans for Ikeo to fill one of the two vacancies on the BOJ board on Tuesday after his name was leaked.

The lawmaker, emerging from a meeting of a panel of both houses of parliament, said no nominee was put forward for the board's other vacancy, for a deputy governor.

A split parliament means the government must win backing from the opposition, which controls parliament's upper house and can veto its key appointments, adding to headaches for Prime Minister Yasuo Fukuda as support rates plunge and the opposition seeks a snap election.

Due to political wrangling, the central bank's policy board has continued holding rate reviews with seven members. (Reporting by Tetsushi Kajimoto)



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