Sanae Takaichi: A Contender for Japan's First Female PM

Sanae Takaichi, who could become Japan's first female prime minister, has underscored the role of the Bank of Japan (BOJ) in determining monetary policy specifics. This stance contrasts her earlier critique of the central bank's interest rate hikes, which she once termed 'stupid.'

Seen as a supporter of strong fiscal and monetary stimulus, Takaichi's previous comments had a significant impact on the markets. She has now clarified that while the government sets the broad direction for fiscal and monetary policy, the implementation is the responsibility of the BOJ. Rapid interest rate hikes, she noted, could impact corporate investment and household mortgages. Takaichi attributes Japan's recent inflation primarily to increased import costs.

As a frontrunner in the race to succeed Prime Minister Shigeru Ishiba, Takaichi is joined by other notable figures, including Shinjiro Koizumi and Yoshimasa Hayashi. With inflation surpassing the 2% target for over three years, the BOJ is signaling a gradual rise in interest rates. The outcome of the race could significantly influence Japan's economic direction.

(With inputs from agencies.)