Japan shapes economic policy as new Prime Minister is about to arrive

VTV.vn - Since the election campaign, solving the inflation problem has been one of Ms. Takaichi's top commitments.

Over the weekend, Japan's ruling Liberal Democratic Party (LDP) got a new leader - Sanae Takaichi - who is likely to become the first female Prime Minister in Japan's history after an upcoming vote in the country's parliament .

In the context that the world's fourth-largest economy is facing a series of challenges both internally and externally, economic policies in the coming time after Sanae Takaichi's victory are one of the issues that the market and experts are most concerned about.

In the capital Tokyo, the news that Ms. Sanae Takaichi was elected president of the LDP received positive reactions from many people, especially expectations about the economy.

"We are facing rising prices and fluctuations in the global market. I hope that policies will be well-oriented for Japan to overcome these difficulties," said Ms. Yukari, an office worker.

Ms. Sanae Takaichi - who is likely to become the first female Prime Minister in Japanese history. Photo: Xinhua

Tackling inflation has been one of Takaichi’s top campaign pledges. She has pledged to provide a cost-of-living package through income tax cuts and deductions for household services, as well as tax breaks for businesses that provide childcare services to their employees, helping to boost the birth rate.

Professor Junichiro Kusumoto - Faculty of Law, University of Tokyo said: "Fiscal support can partly help reduce the burden of living costs of people, especially when prices of essential goods such as rice remain high. The government needs to come up with reasonable and realistic policies for this issue."

As a former cabinet member of the late Prime Minister Shinzo Abe, the new LDP President also proposed plans to create new growth momentum for the Japanese economy, including increased fiscal spending to promote essential fields such as AI, semiconductor chips or modern biotechnology - considered a continuation of Abenomics economic policies.

Ms. Takaichi also said that the government needs to continue to coordinate with the Bank of Japan (BOJ)'s policies to stabilize inflation based on wage growth and consumer demand. This reinforces expectations that changes in the government will not affect the BOJ's interest rate roadmap in the future.

Mr. Kazuo Ueda - Governor of the Bank of Japan (BOJ) said: "No matter who becomes prime minister, BOJ will continue to maintain close contact with the Government, operating monetary policy appropriately to achieve a sustainable 2% inflation rate."

However, Ms. Takaichi's commitments, especially the possibility of a sharp increase in fiscal spending, are also expected to put further pressure on the Japanese yen as well as the public debt situation. In the first session of the week, the yield on 30-year government bonds increased 10 basis points, reflecting concerns from the bond market.

Source: https://vtv.vn/nhat-ban-dinh-hinh-chinh-sach-kinh-te-khi-sap-co-thu-tuong-moi-100251006150950242.htm