key takeaways
- In meetings with Bank of Japan (BOJ) Governor Ueda Kazuo, Prime Minister Ishiba Shigeru and his cabinet ministers indicated that they do not think that additional rate hikes are appropriate now.
- In general, Ishiba, once the Liberal Democratic Party’s (LDP) most vocal opponent of Abenomics, has embraced his predecessor’s “Abenomics-lite” economic policy agenda.
- Ishiba’s about-face likely reflects his tenuous political position, making it difficult to pursue policies that would harm Japan’s growth outlook, as well as consumer and investor sentiment.