Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Takaichi win as Japan leader may delay, not derail, BOJ rate hikes
Economy

Takaichi win as Japan leader may delay, not derail, BOJ rate hikes

Last updated: October 7, 2025 8:45 am
Share
Takaichi win as Japan leader may delay, not derail, BOJ rate hikes
SHARE

By Leika Kihara

TOKYO (Reuters) – With Sanae Takaichi on the brink of becoming Japan’s next prime minister, the likelihood of the central bank opting against an interest rate hike this month has increased. However, this pause could change if it leads to further declines in the yen’s value.

Takaichi, poised to be Japan’s first female leader next week after securing the ruling party’s presidency on Saturday, stands alone among the candidates advocating for substantial government spending and relaxed monetary policies.

The conservative nationalist is expected to be confirmed as premier on October 15, backed by her Liberal Democratic Party, which holds the most seats in parliament. Nonetheless, her coalition faces challenges having lost its majorities in both chambers under former prime minister, Shigeru Ishiba.

NEW LEADER RAISES QUESTIONS FOR BOJ RATE DECISIONS

Post-election, Takaichi emphasized that the government would take the reins regarding fiscal and monetary policies, prioritizing efforts to stimulate demand and invigorate the economy.

While attributing recent price surges to rising raw material costs, Takaichi cautioned against prematurely declaring victory over deflation, especially as companies begin to feel impacts from U.S. tariffs under President Donald Trump.

“The ideal scenario would be to create demand-driven inflation that encourages wage growth, which boosts demand and results in moderate price increases that enhance corporate profits,” she expressed during her post-victory press conference.

Analysts suggest her leadership may lead the Bank of Japan to pause any interest rate hikes on October 30.

“Takaichi is viewed as unlikely to support higher interest rates, which could hinder the BOJ’s efforts for tightening policy,” noted Kazutaka Maeda, an economist from Meiji Yasuda Research Institute.

See also  Sparks secure playoffs spot with win over Brave

“While a potential rate hike hasn’t been entirely dismissed, the central bank might adopt a more careful and gradual approach,” he added, projecting that any increase could be postponed until early next year.

Conversely, some analysts express skepticism about Takaichi’s willingness to resist the BOJ’s strategy of slow and moderate tightening, given that inflation has become a more pressing concern than deflation, which previously led to significant electoral setbacks for Ishiba’s LDP in July.

After decades of extensive monetary stimulus, the BOJ raised its policy rate to 0.5% in January, believing Japan was nearing a stable achievement of its 2% inflation target.

Prior to Takaichi’s victory, the markets had factored in a greater than 60% chance of a rate hike this month, amid persistent inflation exceeding targets for over three years, a division within the board during the September policy meeting, and calls for a near-term hike by a more dovish policymaker.

TAGGED:BOJDelayDerailhikesJapanLeaderrateTakaichiwin
Share This Article
Twitter Email Copy Link Print
Previous Article Taylor Swift Reveals Words Travis Kelce Said Before Proposing Taylor Swift Reveals Words Travis Kelce Said Before Proposing
Next Article OxygenOS 16 release date confirmed – Will your OnePlus phone get it? OxygenOS 16 release date confirmed – Will your OnePlus phone get it?
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Joy Behar Has Meltdown Over Jake Tapper’s Biden Book: What About Trump’s ‘Atrocities’? (VIDEO) |

On a recent episode of The View, co-host Joy Behar and her colleagues expressed considerable…

May 20, 2025

Norfolk Southern CEO faces probe over alleged workplace relationship, CNBC reports

Investigation Launched into Allegations of Inappropriate Workplace Relationship by Norfolk Southern CEO According to a…

September 8, 2024

Lead Alzheimer’s Risk For Under-65s Could Be Reduced With Good Curtains : ScienceAlert

Could Artificial Outdoor Light at Night Increase Alzheimer's Risk? In recent years, various studies have…

September 10, 2024

Youth brawl at park; inquiries continue

During the bustling New Year's celebrations, local police, Hato Hone St John, security, and Red…

January 11, 2025

Maniac with 20 prior arrests busted in random attack on L.A. grandma, 70, in NYC subway station: sources

A disturbing incident occurred in a Midtown subway station this week when a man with…

May 14, 2025

You Might Also Like

Alphabet hikes capex again after earnings beat on strong ad, cloud demand
Economy

Alphabet hikes capex again after earnings beat on strong ad, cloud demand

October 31, 2025
What is a merchant bank?
Economy

What is a merchant bank?

October 30, 2025
Fed Cuts Rates by a Quarter Point, as Expected
Economy

Fed Cuts Rates by a Quarter Point, as Expected

October 30, 2025
Fed’s Standing Repo Facility hits record high as policy meeting outcome looms
Economy

Fed’s Standing Repo Facility hits record high as policy meeting outcome looms

October 30, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?