- Aims to accelerate incumbent prime minister Kishida's new capitalism pledge
- Will consider appropriate timing for lower house election
- Revitalising consumption is key for Japan to emerge from deflationary spiral
- Must scrutinise what will be the most effective step to cushion blow from rising inflation
- There is a time lag for wage growth to exceed inflation
He hasn't been too vocal about his views on policy but it is expected that he is likely broadly supportive of the BOJ's current plans to normalise monetary policy. This keeps the odds of a 25 bps rate hike by the BOJ in December very much alive.
The yen surged earlier on Ishiba's victory, which upset traders' positioning for a Takaichi win instead. The latter had been the most vocal among the candidates coming into the election today. And she wasn't afraid in calling out the BOJ in hiking rates too quickly, at least for her liking.
There would've been considerable friction in that case if she had won. But now, we get Ishiba in charge and that's allaying the fears for yen bulls.