Other recent media polls have also seen Takaichi’s approval ratings slide. Kyodo news agency reported on Friday that Takaichi may reshuffle her cabinet in August or September.
“Her approval ratings remain high compared to past administrations so it’s not as if Takaichi’s political grounding is shaking,” said Kenji Yamamoto, chief market economist at Daiwa Securities.
“But it’s also true the enormous political capital she gained from the lower house election victory is gradually diminishing,” he said.
The focus now would be on what message Takaichi sends through the cabinet reshuffle on the direction of her reflationist policies, he added.
The Bank of Japan raised interest rates to a 31-year high of 1 per cent in June, though real borrowing costs remain negative with inflation hovering around its 2 per cent target for nearly four years.
Government fuel subsidies helped keep core consumer inflation below the BOJ’s 2 per cent target for a fifth straight month in June. But analysts expect core inflation to climb back above 2 per cent later this year, as the recent surge in producer prices filters through to the broader economy.
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