Sanae Takaichi will govern as prime minister — if, as expected, she wins that post on Tuesday — with less of a focus on spending and easy money than she might have liked.
To get her over the line, the Liberal Democratic Party, which she leads, has had to form a coalition with the Japan Innovation Party (JIP), and this means she will have to compromise.
“I think the JIP won’t be engaging in lavish fiscal spending, so the market will probably find it somewhat reassuring,” said Saisuke Sakai, chief economist at Mizuho Research & Technologies.
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