Magnifying glass on market graphs
Markets

No mention of Bank of Japan in Abe's party election pledges

Liberal Democratic Party doesn't reference Bank of Japan

Central bank independence doesn't exist in Japan and in the past, the LDP campaigned heavily on using the BOJ to stimulate the economy in elections in 2012 and 2014.

An election in the upper house was called for July 10.

What does it mean?

The kneejerk reaction is think the BOJ will be asked to do less but I think that's a dangerous assumption.

Perhaps they're looking for a stronger mandate on structural reforms rather than promising another round of BOJ hocus-pocus. Or maybe it's just assumed the BOJ will continue to experiment and push the envelop.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos