Shanghai Daily: Business - shanghaidaily.com
THE Bank of Japan deputy chief Toshiro Muto is still the front runner to replace Toshihiko Fukui when the governor's term ends in March, economists said. Thirteen of 15 economists surveyed by Bloomberg News last week said Muto will become central bank governor and adopt Fukui's policy of gradually raising interest rates, the lowest among major economies. Muto was the favorite last month as well, Bloomberg News reported. "Muto still has a clear competitive edge," said Hideo Kumano, a former central bank official and now chief economist at Dai-Ichi Life Research Institute in Tokyo. "Under him, the bank will probably seek a gradual rate increase." Fukui last week said the central bank remained committed to raising interest rates even as the economy cooled. At the same time, the bank cut its growth assessment for the first time in three years, saying the expansion will slow. "It's inconceivable to expect the bank to make a sudden policy shift under