Forex

TOKYO (Thomson Financial) - The ruling Liberal Democratic Party is seeking informal discussions with the main opposition Democratic Party of Japan in a bid to prevent a leadership vacuum at the Bank of Japan (BoJ), the Nikkei reported Thursday, without citing sources.

The ruling bloc-dominated lower house is scheduled to vote on the government's nominees for BoJ governor and two deputy governors during a plenary session on Thursday, the business newspaper said.

On Wednesday, the opposition-controlled upper house rejected deputy governor Toshiro Muto's bid to become the next central bank chief as well as the appointment as deputy governor of Takatoshi Ito, a professor of economics at the University of Tokyo.

Prime Minister Yasuo Fukuda now faces the difficult task of deciding on the next course of action, which may include re-nominating Muto or finding other candidates.

The LDP is also considering potential talks with the DPJ at the secretary-general or party president level as a way to resolve the impasse.

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