According toXinhua News AgencyAccording to reports, Japanese Prime Minister Sanae Takachi announced at a press conference on the 19th that the House of Representatives will be dissolved on January 23, seeking voter authorization to continue governance, with the House of Representatives election scheduled for February 8. The term of the current members of Japan's House of Representatives was originally set to expire in October 2028. The Japanese Constitution stipulates that the Diet must be convened within 30 days after the House of Representatives election to hold a prime ministerial nomination election.
Sanae Takachi clearly stated at the press conference that her premiership would depend on the outcome of this election. She emphasized that if the ruling coalition maintains a majority in the upcoming election, she will continue as prime minister and requested the mandate to continue leading the country. This statement directly framed the election as a national referendum on her legitimacy to govern.
Sanae Takachi also revealed that a series of 'far-reaching' bills will be discussed at the forthcoming meeting, hinting that her subsequent policy agenda may involve significant structural reforms or economic adjustments. She pointed out that the Japanese government will end excessively tight fiscal policies, and strategic fiscal expenditures will increase employment and household income, thereby generating higher tax revenues. It is necessary to make bold investments in risk management and break free from the constraints of excessive austerity. Preparations will begin to exempt food from consumption tax for two years; funding issues for the consumption tax reduction are still under consideration. Subsidies may be cut, and the overall budget will be revised. Japan’s fiscal sustainability will be ensured by reducing the debt-to-GDP ratio.
The market reacted relatively calmly to this news. In the foreign exchange market, the yen exchange rate did not experience sharp fluctuations.$USD/JPY (USDJPY.FX)$It is currently trading at 157.937, with a decline of 0.12%. Investors are closely monitoring the direction of the election and subsequent policy details to assess their potential impact on the path to monetary policy normalization.
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