The Takaichi Sanae administration (高市早苗政権) is being asked whether it will move away from reflationary policy, which is based on monetary easing and fiscal stimulus. The focus is on the market reaction and its response to future budget formulation and BOJ policy.
Focus is on whether the Takaichi administration will move away from reflationary policy. While the government has taken a negative stance against the backdrop of US concerns, the market has largely responded coolly rather than accepting the message at face value. Attention will turn to the formulation of the fiscal 2027 budget and the response to the BOJ's monetary policy.
Against the backdrop of US concerns, the government has reportedly emphasized its rejection of reflationary policy, but the market is seen as not accepting the policy at face value. The gap between government policy and market perceptions will be a focus going forward.
The focus going forward will be the formulation of the fiscal 2027 budget and the response to the BOJ's monetary policy, with the nature of fiscal stimulus and the future role of monetary easing once again being called into question.
Attention will be paid to how specifically the Takaichi administration's policy of moving away from reflation will be presented, as well as to future government announcements and the market reaction.