JCP on appointment of new Bank of Japan governor

Japanese Communist Party Secretariat Head Ichida Tadayoshi on February 24 issued a statement commenting on the prime minister's nomination of a new Bank of Japan governor as follows:

Prime Minister Koizumi Jun'ichiro has named Fukui Toshihiko, a former deputy governor of the Bank of Japan, as the new BOJ governor succeeding Hayami Masaru.

The government policy, which includes the accelerated disposal of bad loans held by banks, is the source of the deepening economic crisis, and it has shifted all its responsibility for the crisis onto the central bank's monetary policy. Equally, the BOJ is to blame for subserviently following the government policy in making Japan's financial situation extraordinarily abnormal through its submission to U.S. pressure and such monetary measures as zero-interest rates and the easing money. At present, the government is putting more pressure on the BOJ to adopt a so-called "inflation target" to raise prices while maintaining the policy that will only help to reduce people's incomes and purchasing power. Such a policy will only make the Japanese economy weaker.

The need now is for the BOJ to contribute to the national economy by ensuring financial stability. From this point of view, we will closely follow what the new BOJ governor and policy board members will do. (end)