Japan's upper house of parliament votes down government nomination for BOJ chief

Japan's opposition-controlled upper house of parliament rejected the government's nominee for Bank of Japan chief Wednesday.

The opposition had threatened for days to block the appointment the Toshiro Muto, accusing the government of using strong-arm tactics to push through its personnel decisions. Muto, 64, is currently a central bank deputy governor and was nominated for the top post last week.

The term of the current Bank of Japan governor ends March 19. The candidates for governor and the two deputy governors at Japan's central bank need approval from both houses of parliament.

The ruling coalition controls the more powerful lower house, and has used that edge recently to ram through some bills that require approval from only that house.

The stalemate in legislature over who will head the central bank of the world's second largest economy is a major embarrassment for Japan's government at a time when fears are growing about a global slowdown.

The upper house voted to oppose Muto's appointment in a vote of 129-106.

In a twist, the opposition approved one of the government appointments for deputy, former BOJ Executive Director Masaaki Shirakawa, 58, now a Kyoto University professor, who won on a vote of 230-7.

The nominee for the other deputy post _ Takatoshi Ito, 57, a professor at University of Tokyo _ was voted down along with Muto.