Japan’s largest opposition party just made the October 27 general election more interesting with a surprise policy that could have significant consequences for the race and possibly the economy as a whole.
The Constitutional Democratic Party of Japan on Monday issued a platform statement calling for redefining the Bank of Japan’s inflation target from the current 2% to “above 0%.”
Such a target adjustment could result in higher interest rates and a stronger yen, which could help households and small businesses but also shake global markets as stock prices in Japan fall and carry trades decline.
