In a significant development in Japan’s political landscape, veteran lawmaker Sanae Takaichi has announced her candidacy for the leadership of the ruling Liberal Democratic Party (LDP). Takaichi, widely regarded as a fiscal dove, revealed her campaign pledge on September 19, 2025, in Tokyo. Her platform includes a combination of income tax cuts and direct cash payouts to households, aimed at stimulating Japan’s fragile economy. Additionally, Takaichi advocates for a gradual reduction in the government’s debt-to-GDP ratio, signaling a balanced approach to fiscal management. Takaichi, who aspires to become Japan’s first female prime minister, is considered a frontrunner in the race, alongside Agriculture, Forestry, and Fisheries Minister Shinjiro Koizumi. She has consistently opposed the Bank of Japan’s (BOJ) interest rate hikes and has called for increased government spending to reflate the economy. Her press conference, scheduled for Friday, coincides with the conclusion of the BOJ’s two-day meeting, where the central bank is expected to maintain interest rates at 0.5% but indicate its readiness to raise borrowing costs in the future. Analysts at Mizuho Securities noted that Takaichi’s campaign pledge could alleviate market concerns over Japan’s worsening finances, particularly if it avoids prioritizing the abolition of the consumption tax on food, maintaining monetary easing, and pursuing weak-yen policies—stances she has previously endorsed. The outcome of the LDP leadership race, set for October 4, will determine the successor to outgoing Prime Minister Shigeru Ishiba and could have significant implications for Japan’s economic and fiscal policies.
Japan PM contender Takaichi to call for income tax cuts, cash payout, Nikkei says
