Insight | Asia

Takaichi win as Japan leader may delay, not derail, BOJ rate hikes

6 October 2025, 2:15 pm

1 min read

Sanae Takaichi, the newly elected leader of Japan's ruling party, the Liberal Democratic Party (LDP), holds a press conference after the LDP presidential election in Tokyo, Japan, October 4, 2025. Conservative Sanae Takaichi hailed a "new era" on October 4 after winning the leadership of Japan's ruling party, putting her on course to become the country's first woman prime minister. Yuichi Yamazaki/Pool via REUTERS

With Sanae Takaichi set to become Japan’s prime minister, advancing expansionist economic policies, chances have risen that the central bank will avoid raising interest rates this month, though the pause may not last if it batters the yen.