Japan's ruling Liberal Democratic Party (LDP) suffered significant losses in Sunday's election, leaving Prime Minister Fumio Kishida's future and the Bank of Japan's (BOJ) monetary policy uncertain. Despite the setback, Kishida pledged to remain in power.
The rise of Sanseito, a far-right party advocating a "Japanese First" policy, further complicates the political landscape. This party gained considerable ground, reflecting a growing wave of populism and polarization within the nation.
Some Sanseito leaders are even calling for restoring greater power to the emperor. The election results now challenge the BOJ's plans to gradually shift away from its ultra-loose monetary policy, creating a complex situation for the central bank.
