Overview

• Sanae Takaichi, a leading candidate in Japan's ruling Democratic Party leadership race, calls for the BOJ to maintain its ultra-easy monetary policy.
• Takaichi argues that raising interest rates now would hinder economic recovery and make it difficult for young people to secure home loans and for businesses to invest.
• Despite inflation surpassing the BOJ's 2% target, Takaichi notes that core inflation, excluding fresh food and energy, remains below this level.
• The BOJ has already raised interest rates twice this year but is expected to hold steady in its upcoming meeting, with further hikes anticipated later in the year.
• Takaichi's stance aligns with her advocacy for the aggressive economic stimulus policies of former Prime Minister Shinzo Abe, positioning her as a strong contender in the upcoming election.