Incoming Japanese PM Unlikely to Prevent Central Bank's Rat

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Dow Jones NewsOct 6, 2:11 AM UTC
DJ Incoming Japanese PM Unlikely to Prevent Central Bank's Rate Hike -- Market Talk

0211 GMT - Japan's incoming prime minister, Sanae Takaichi, is unlikely to prevent the central bank from raising interest rates, says Capital Economics' Marcel Thieliant in a note. No government has tried to openly influence the Bank of Japan's decision-making in more than 20 years, and such attempts are unlikely to be successful, he notes. Takaichi also won't be able to alter the board composition in the short term, he says. Takaichi is widely seen as a proponent of looser fiscal policy, Thieliant says, but "any loosening of fiscal policy would strengthen the case for tighter monetary policy as it would create additional upward pressure on inflation." CE still expects a 25bp rate hike at the central bank's October meeting. ([e-mail])

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October 05, 2025 22:11 ET (02:11 GMT)

 
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