Rising Concerns Over Japan's Interest Rate Hikes Amid Election

The Sanseito party, led by Sohei Kamiya, argues that the Bank of Japan's rapid interest rate hikes could damage Japan's economy and small businesses. Prioritizing tax cuts and loose fiscal policies, Sanseito aims to capture voter support by challenging the ruling party with its 'Japanese First' policies.

With Japan's general election approaching, the Sanseito party's leader, Sohei Kamiya, has raised concerns about the Bank of Japan's rapid interest rate hikes potentially harming the economy. Kamiya emphasizes the need for tax cuts and a more cautious monetary approach as key strategies to revitalize the nation's fragile economy.

The party, which emerged from its far-right origins, poses a significant challenge to Prime Minister Sanae Takaichi's ruling party. Sanseito's popularity has grown, partly due to its strict immigration policies and efforts to tackle rising living costs, which mirror Trump's 'America First' stance.

The Bank of Japan, having ended a long-running stimulus and raised short-term rates, faces scrutiny over its policy pace. Kamiya urges a balance between fiscal and monetary measures, cautioning against excessive focus on central bank independence, which might inadvertently hurt economic recovery.

(With inputs from agencies.)