We think that the markets would be wrong to expect major changes in the Bank of Japan’s monetary stance after the Lower House elections in December. For a start, it is not certain that the LDP will win. Even if opposition leader Shinzo Abe does become Prime Minister and is able to persuade the Bank of Japan to raise its inflation target, this may not make much difference in practice. Monetary policy is already very loose and likely to remain so regardless of the identities of the Prime Minister or the next Governor of the central bank.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.