Feb 18 • 09:00 UTC 🇯🇵 Japan Asahi Shimbun (JP)

Will Concerns Over Finance Recede with "Takaichi's Strong Leadership"? The Strengthening Yen and Falling Interest Rates Persist Amid Remaining Concerns

Japan's Prime Minister Fumio Kishida's administration faces contrasting economic signals following the Liberal Democratic Party's victory, with rising yen strength and declining interest rates amid fiscal concerns.

The second cabinet of Prime Minister Sanae Takaichi is set to be inaugurated, posing questions regarding the effects of her 'responsible aggressive fiscal policy' platform, which has been catalyzing a depreciation of the yen since she took over as the ruling Liberal Democratic Party (LDP) leader in the previous autumn. With the LDP's recent overwhelming victory in the House of Representatives election, there has been a notable 'reversal' toward yen appreciation. Former officials signal that this victory may change the way policies are crafted, indicating a reduced necessity to adopt opposition party policies that had been a common practice previously. This shift in policy dynamics aligns with an interesting perspective within governmental and financial circles.

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