BNP Paribas Economists Predict Strengthened Economic Policies in Japan Following Election

BNP Paribas economists have indicated that Japan's ruling Liberal Democratic Party's victory in the recent election is expected to bolster high-pressure economic policies. According to Jin10, the economists highlighted in their research report that although there is still cautious sentiment within the party regarding a consumption tax reduction, the likelihood of its implementation has significantly increased due to the election outcome. Analysts believe that given the Prime Minister's public commitment to implementing the tax cut by the 2026 fiscal year and the party's overwhelming victory, the government is likely to expedite the measure while maintaining a focus on market stability. The report also noted that the Liberal Democratic Party's win is anticipated to facilitate the smoother advancement of increased defense spending as requested by the United States.