Incoming Japanese Prime Minister Sanae Takaichi is highlighting some early plans:
Will immediately issue order to compile stimulus package once chose to be next PMMy hope is to form an alliance with other parties to form a stable governmentWill need to pass legislation to cut gasoline tax, compile supplementary budget as otherwise the cost of living will hurt consumption and worsen the economy
The ultimate judge of Takaichi is going to be the bond market. She’s leaning on the BOJ to be more-dovish while also planning to goose Japanese fiscal deficits. That’s a recipe for inflation and Japanese 10-year yields are at the highest since 2011.
Could we get a Liz Truss moment at some point?
This article was written by Adam Button at investinglive.com.