TOKYO (AFP) – Japan’s next prime minister, Shigeru Ishiba, is expected to call snap elections for October 27, as reported by local media on Monday, following a steep decline in equities driven by a stronger yen and fears of impending tax hikes.
Set to be officially appointed on Tuesday, Ishiba has voiced support for the Bank of Japan’s interest rate hikes and hinted at potential corporate tax increases. His victory in the ruling Liberal Democratic Party (LDP) leadership contest on Friday came after a tight race against right-wing candidate Sanae Takaichi, a proponent of former PM Shinzo Abe’s “Abenomics” policies of ultra-low interest rates and tax cuts. Takaichi’s defeat led to a strengthening yen and a sharp drop in stock prices, with the Nikkei index plunging five percent.
Ishiba is reportedly preparing to dissolve parliament on October 9, ahead of the general elections later in the month. LDP leaders hope his leadership will revive the party’s popularity after a recent scandal and rising public discontent over inflation.
In addition to economic reforms, Ishiba has pledged to bolster defense alliances, particularly in response to growing regional tensions with China and North Korea, while also tackling Japan’s public debt challenges.
