Japan: Takaichi’s LDP heading to absolute majority at snap election, possibly with stronger budget control
Prime Minister (PM) Takaichi called a general election on February 8th, by dissolving the Lower House on January 23rd. Her intention was to win an absolute majority as her Cabinet approval rate was elevated at 62% in January, jumping from 39% in September-25 just before former PM Ishiba resigned in October-25 (Chart 1). During the short election period, a potential reduction to the consumption tax became the focal point of the campaign. After opposition proposed to lower or to eliminate the tax, Takaichi’s Liberal Democratic Party (LDP) joined the bandwagon. As these proposals are likely to de...