Rising Political Tempests Amid Japan's Economic Trial

Japan's economic landscape faces potential upheavals, with prominent ruling party member Ken Saito voicing concern over the impact of U.S. tariffs. The Bank of Japan (BOJ) is urged to adopt a cautious approach regarding interest rate hikes amidst a fragile economic recovery.

The political scene adds to the uncertainty as Saito calls for Prime Minister Shigeru Ishiba's resignation after electoral setbacks, suggesting a need for new leadership to forge stable coalition governance. Saito highlights the importance of policies fostering wage growth over tax cuts.

The BOJ, after historical stimulus measures, grapples with balancing inflation objectives and external economic pressures. Meanwhile, ruling coalition challenges necessitate deft negotiations with opposition parties to secure legislative cooperation and ensure a consistent policy environment.

(With inputs from agencies.)