MNI BRIEF: Takaichi Elected LDP's 1st Female Head

Japan’s ruling Liberal Democratic Party on Saturday elected Sanae Takaichi as its new president in a runoff against Agriculture Minister Shinjiro Koizumi, paving the way for her to become Japan’s first female prime minister.

Opposition parties, which together control a majority in both chambers of parliament, are unlikely to agree on a unified candidate due to policy differences.

In her first speech as LDP president, Takaichi said tackling the cost-of-living crisis would be her top priority. She noted that small and medium-sized enterprises, as well as those in the agriculture and fisheries sectors, have been hit hard by rising costs and “need to be helped.”

Economists view Takaichi as a fiscal dove who favours government stimulus over fiscal consolidation, a stance that could lift stock prices.

She has previously criticized the Bank of Japan’s interest rate hikes, though she softened her comments during the campaign. Economists said her leadership could delay the timing of further BOJ rate increases, potentially weakening the yen and adding upward pressure on longer-dated Japanese government bond yields.

At her first press conference as LDP leader on Saturday, Takaichi reiterated her position on central bank coordination, saying, “The BOJ and the government must work in step with each other.”