The
Kishida has pushed his
The LDP, which has been in power for most of the period since 1955, has come under intense scrutiny as some of its groups, including the Abe faction, neglected for years to report portions of income from fundraising parties, creating slush funds in the process.
In February, Kishida abruptly announced his intention to appear before the
An LDP lawmaker said that by undermining politicians who were close to Abe, Kishida has shored up his chances of securing a three-year second term as leader of the ruling party at its presidential election around September, despite his
On Tuesday, the BOJ scrapped its negative interest rate policy in its first rate hike in 17 years, overhauling the central bank's unconventional monetary easing framework of the past decade designed to end deflation.
"It has come into view that our 2 percent price stability target can be achieved sustainably and stably, with a virtuous cycle of pay and price increases confirmed to be in motion," BOJ chief
The bank's aggressive monetary easing was one of the three pillars of the Abenomics deflation-fighting program during Abe's more than seven-year tenure as prime minister from 2012, along with massive fiscal spending and an economic growth strategy.
Monetary easing of a "different dimension" by the BOJ was a "symbol of Abenomics," the LDP lawmaker said, adding the central bank's decision "pleased" Kishida as it signaled the "complete termination" of Abe policies that were still in place.
In
In April that year, Ueda, a former BOJ board member, became the first central bank governor hailing from academia in postwar
Kuroda's successor was also set to play a role in restoring the independence of the central bank, which has been undermined by apparent interventions by the government in monetary policy decisions under Abenomics.
A government source said Kishida, who is skeptical about whether drastic monetary easing would help end deflation, hoped Ueda, despite this touted independence, would revise policies that caused the Japanese yen's plunge, driving up import prices and eroding consumer sentiment.
After meeting with Ueda on Tuesday, Kishida described the
Since he took office in
The Kishida administration has begun considering whether to declare an official end to deflation in the near future, given the recent robust corporate profits and positive wage momentum, the government source said.
After declaring the "perfect end of deflation," which Abe was not able to do, Kishida may "dissolve the lower house for a snap election ahead of the LDP presidential race," said Yoshizaki, who is well-versed in Japanese politics.
Abe,
Meanwhile, former BOJ board member
Abe faction lawmakers called on the BOJ to uphold its radical easing as a "legacy" of the former prime minister, which prevented the central bank from normalizing monetary policy even after Ueda became governor, he said.
The slush funds scandal, however, "weakened the voice" of the Abe faction, giving the BOJ flexibility and allowing the central bank to abolish its negative interest rate policy and yield cap program, two major remnants of Kuroda's era, Kiuchi added.
==Kyodo
© Kyodo News International, Inc., source