Japan’s prime minister defends ultra-loose monetary policy during his campaign for the July 10 vote.
The campaign for Japan’s upper house elections has begun with the fight of Prime Minister Fumio Kishida Criticize monetary policy too loose he continues to be supportive despite worries that it is increasing in price faster.
Kishida defended the government’s approach in Tuesday’s televised debate with eight other party leaders that marked the start of campaigning for the July 10 election. Kenta Izumi, head of the Democratic Party largest opposition Constitutionalist, has used the term “Kishida inflation” in an attempt to capitalize on recent price increases that have eroded the Prime Minister’s relatively strong support.
“Inflation right now is due to rising fuel prices and a weak yen,” Izumi said in Tokyo. “It’s hard to stop the fuel price rally, but the question is whether you’ll leave the weak yen alone.”
In response, Kishida, a former banker, suggested that the current policy should be maintained, while reiterating his warning about the harm higher interest rates could have on small businesses and owners. home. Kishida has so far supported the policies of Bank of Japan Governor Haruhiko Kuroda, including in a statement Monday.
“Monetary policy has a strong impact on exchange rates,” Kishida said at the debate. “But it also affects micro, small and medium businesses and mortgage rates. In other words, it has a strong impact on the economy as a whole.”
Worries about inflation have injected a measure of uncertainty into an election that the ruling Liberal Democratic Party appeared to have won by a margin just a few weeks ago. While the upper house holds less power, a convincing victory would allow Kishida to postpone another election test for three years and avoid the “revolving door” many of his predecessors passed. via.
Japan’s fractured and unpopular opposition has long struggled to capitalize on the LDP’s struggles. A poll conducted by the Nikkei newspaper June 17-19 showed that 43% of respondents plan to vote for the LDP, followed by 10% for the Japan Innovation Party and 8% for the CDP. LDP alliance partner Komeito gets 6%.
Kishida is also preparing to fight back on defense policy after Russia entered the war in Ukraine, raising concerns in Japan that China could wage a similar territorial struggle in Asia. In response, the once moderate Kishida pledged to significantly strengthen the country’s defenses, with a commensurate increase in spending.
The LDP’s policy platform calls for keeping in mind the North Atlantic Treaty Organization’s goal of 2% of gross domestic product and for the nation to have the capacity to respond to a missile attack. However, Kishida said on Tuesday that the government has yet to decide on a target for military spending. CDP policies adhere closely to Japan’s postwar pacifist tradition.
It remains to be seen how much money can be generated in the world’s most indebted country, or how it will be spent. Four months after Russia’s attack, polls show voters’ priorities are slowly shifting away from national security and back toward pocket-sized issues like revitalizing the economy.
With the government urging consumers to cut back on electricity use this summer amid tight supplies and soaring costs, the LDP has announced it will restart nuclear reactors when they are announced. Dad is safe. Resistance to atomic energy is dwindling, even in a country traumatized by the 2011 Fukushima nuclear disaster.
In contrast, the opposition CDP has proclaimed towards a society without nuclear energy.
“We cannot rely on one source of energy,” Kishida said. “An important factor is nuclear energy. I want to continue rebooting because safety has been confirmed”.
