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2025-10-30 10:10:12
[Analyst: Markets Firmly Believe Prime Minister Sanae Takaichi's Appointment Will Mean a Longer Period of Loose Monetary Policy] Eamonn Sheridan, an analyst at the US financial website InvestingLive, stated that the market firmly believes that the appointment of Japanese Prime Minister Sanae Takaichi will mean a longer period of loose monetary policy. However, potential economic data may justify a more hawkish stance, including: the Tankan survey showing a modest improvement in the confidence index of large manufacturers in September, wage growth and inflation gradually reinforcing each other, and the overall economy remaining resilient despite increased US tariffs. Nevertheless, Bank of Japan Governor Kazuo Ueda maintained a cautious tone, emphasizing the need for coordination with the new government before adjusting interest rates. Ueda stated that the Tankan survey results did not yet reflect the drag from US trade measures. Meanwhile, political coordination may delay the next step, and the new government could choose to request the Bank of Japan to postpone policy adjustments. Most analysts expect the Bank of Japan to keep interest rates unchanged at today's meeting, while retaining the possibility of tightening policy later. Ueda is likely to emphasize that further yen depreciation could push up import prices, thereby exacerbating inflation—a concern that may resonate with Takaichi. Sanae Kaohsiung has made the pressure of the cost of living a core political issue.
