Liberal Democratic Party chief Shinzo Abe, who could become the next prime minister after December's general election due to his party's popularity, heaped pressure on the Bank of Japan by calling Thursday for unlimited monetary stimulus.
"The biggest economic problem is prolonged deflation and a strong yen," Abe, president of the largest opposition party, said in a speech in Tokyo. "Markets will only start to react once unlimited monetary easing is conducted."
The yen sank to a six-month low against the dollar after Abe's comments as markets priced in the possibility of more easing by the BOJ if the LDP wins the Dec. 16 election. RBS Securities Ltd. and JPMorgan Chase & Co. expect the central bank in December to increase monetary stimulus for the fifth time this year.