Revision of BOJ law is necessary to ensure independence, says Iwata

Revision of BOJ law is necessary to ensure independence, says IwataKikuo Iwata, the government's nominee to become a Bank of Japan deputy governor, said on Tuesday that the a law guaranteeing the independence of the country's central bank is necessary so that the law clearly states that that the BOJ can choose between alternatives to meet its inflation targets.

Iwata has also said that the revision of the law is not likely to happen immediately as more debate over the matter in required in the parliament. Iwata said at a confirmation hearing in the lower house of parliament that the lawmakers will discuss the issue in the parliament and decide upon the matter.

Kikuo Iwata, who is working as a professor at Tokyo's Gakushuin University, was nominated by Prime Minister Shinzo Abe to be one of two new deputy governors of Japan's central bank. Bank of Japan (BOJ) is facing pressure from the new government of Prime Minister Shinzo Abe to show to the market players that it is willing to take bold steps to ease monetary situation in the country.

Haruhiko Kuroda, which was recently nominated by the government of Japan for heading the country's central bank, has said that he would take steps to address the deflation in the country if he has appointed as the Governor of the Bank of Japan (BOJ). Mr. Kuroda is presently working as the head of the Asian Development Bank.

Mr. Kuroda is known for his backing for a more aggressive stimulus for the struggling Japanese economy.

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