Japan PM Ishiba's U-Turn on Interest Rates Surprises Market

   Tokyo, Oct. 6 (Jiji Press)--Japanese Prime Minister Shigeru Ishiba's recent remark signaling opposition to interest rate hikes by the Bank of Japan has taken the financial market by surprise, as he had been viewed as a proponent of rate hikes.
   The market is being perplexed by the statement by Ishiba, who had been critical of Abenomics, the late former Prime Minister Shinzo Abe's economic policy mix, which included massive monetary easing.
   Ishiba had long voiced criticisms regarding the side effects of the BOJ's prolonged large-scale monetary easing, saying that "the Japanese economy will not be cured with unprecedented monetary accommodation."
   Investor concerns about Ishiba's economic policies grew after he beat former economic security minister Sanae Takaichi in a runoff in the leadership election of the ruling Liberal Democratic Party on Sept. 27. Takaichi, who led the first round of voting in the election, supports the continuation of the Abenomics policies.
   The concerns caused Japan's benchmark Nikkei 225 stock average to plunge over 1,900 points Monday, the first business day after the LDP election, in a phenomenon called the "Ishiba shock."

(2024/10/06-09:09)

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