Skip to main content

Weaker inflation reduces urgency for BoJ rate hikes

While new Prime Minister Sanae Takaichi is reportedly preparing a larger supplementary budget than the one last year, coalition partner Ishin No Kai has dropped its demand to slash the sales tax on food to zero. And with Ishin No Kai averse to wasteful public spending, we don’t expect the budget balance to deteriorate much next year.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access