US EditionJapan Election Could Further Hamper BOJ's Drive to Raise Rates
JAPAN, JUL 13 – Opposition parties favor tax cuts and loose monetary policy amid concerns over Japan’s $7.9 trillion debt, risking extended low interest rates despite Bank of Japan’s planned hikes.
- Ahead of July’s vote, Japan’s opposition parties favour tax cuts and loose monetary policy, increasing pressure on the Bank of Japan to keep interest rates low longer than it wants.
- In a recent Asahi newspaper poll, 68% of voters favored a sales tax cut, while Japan’s public debt equals 250% of GDP, far above Greece at 165%.
- According to UBS SuMi Trust economist Daiju Aoki, `there’s a 50% chance the ruling coalition could lose its majority in the upper house,` which could delay BOJ rate hikes amid U.S. tariff uncertainty.
- Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, said, ‘There’s a good chance the government will compile an extra budget to fund another spending package,’ reflecting market caution amid political uncertainty.
- Amid rising debt servicing costs, Shigeru Ishiba may soften his hawkish fiscal stance to boost spending, while Japan’s government spends nearly a quarter of its budget on debt, suggesting fiscal strain.
11 Articles
11 Articles
Japan's currency has lost a lot, especially to the euro, and the following aspects could now bring about a turnaround for it.
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Channel News Asia
Japan election could further hamper BOJ's drive to raise rates
TOKYO: Japan's central bank may face political pressure to keep interest rates low for longer than it wants, as opposition parties favouring tax cuts and loose monetary policy are expected to gain influence after a Jul 20 election. Opinion surveys suggest Prime Minister Shigeru Ishiba's coalition may lose
Analysis-Japan election could further hamper BOJ’s drive to raise rates
By Leika Kihara TOKYO (Reuters) -Japan’s central bank may face political pressure to keep interest rates low for longer than it wants, as opposition parties favouring tax cuts and loose monetary policy are expected to gain influence after a July 20 election. Opinion surveys suggest Prime Minister Shigeru Ishiba’s coalition may lose its majority in the upper house of parliament, forcing it to court an array of smaller parties pushing for easier f…
Japan's Political Pressures May Keep Interest Rates Low
Japan's Political Pressures May Keep Interest Rates Low Japan's central bank is under the spotlight as upcoming elections might result in political pressure to maintain low-interest rates. With opposition parties pushing for fiscal leniency, monetary policy may face significant challenges affecting the country's economic strategy.Prime Minister Shigeru Ishiba's government risks losing its majority in the upper house, making it vulnerable to call…
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