Sanae Takaichi Launches Bold Election Bid for Japan's Economic Revitalization

Japan's Prime Minister Sanae Takaichi has announced a national election for February 8, seeking voter support for increased spending and tax cuts. The election will test public opinion on her economic strategies amid rising living costs and a new defense strategy. The move aims to strengthen her political position.

Japan's Prime Minister, Sanae Takaichi, has officially declared a national election for February 8 to gain voter support for her governmental plans, which include increased spending and significant tax cuts. Takaichi's announcement was made during a press conference where she emphasized the personal stakes in the upcoming election.

Key measures in her proposal involve suspending an 8% consumption tax on food for two years, aiming to stimulate job growth and household expenditure. However, these measures are expected to reduce government revenue significantly, affecting economic predictions and reactions in financial markets, evidenced by a spike in 10-year government bond yields.

The election serves as Takaichi's first test since assuming office and will play a crucial role in assessing her control over the ruling Liberal Democratic Party. Voter sentiment on increased government spending will be pivotal, especially amid concerns over rising living costs as highlighted in recent polls reflecting public priorities.

(With inputs from agencies.)