Forex Flash: Not difficult for BoJ appointments to be approved - Nomura

While Kuroda and Nakaso have all the odds stacked in their favour to be confirmed governor and deputy-governor from the BoJ, the main opposition party DPJ has opposed to Kikuo Iwata as deputy governor.

From Nomura: "The appointment of the BOJ governor and deputy governors is the responsibility of the Diet and requires majorities in both houses. Between them, the LDP and the New Komeito have more than a two-thirds majority in the Lower House. However, they have only 102 seats in the Upper House, 16 short of the 118 they need for a majority (six seats are vacant). They will therefore need the support of some opposition members in the Upper House to get their proposals passed."

Nomura thinks "it will not be particularly difficult to get these appointments approved, including Iwata, and think that the BOJ could well decide on additional monetary easing at its next policy board meeting in April even if one of the deputy governor posts remains vacant; however, the fact that the markets have gotten so far ahead of themselves in their expectations of major monetary easing raises the risk of future, albeit perhaps temporary, market turbulence."