Japan leading PM candidate Koizumi vows to respect BOJ's independence, media says

TOKYO (Reuters) - Japan's former Environment Minister and leading prime ministerial candidate Shinjiro Koizumi said he would respect the central bank's independence in setting monetary policy if he is chosen to lead the country, according to a television programme on Wednesday.

"I will respect the Bank of Japan's independence," Koizumi was quoted as saying in the BS 11 programme, adding that he would focus on ensuring smooth dialogue and communication between the government and the central bank.

On currency market moves, Koizumi was quoted as saying that excess volatility was undesirable.

The 43-year-old son of former Prime Minister Junichiro Koizumi is seen as a leading contender in the Sept. 27 race to pick the Liberal Democratic Party's (LDP) new leader, who will become the next prime minister due to the party's control of parliament.

He ranked as the most favoured candidate to become the next LDP leader in a poll taken by the Nikkei newspaper on Aug. 21-22, followed by former Defence Minister Shigeru Ishiba.

The winner of the LDP race will be appointed prime minister at an extraordinary parliament session early in October.

(Reporting by Leika Kihara; Editing by Mark Porter)