FX.co ★ Sanae Takaichi Set to Become Japan’s First Female PM

The Liberal Democratic Party of Japan has elected Sanae Takaichi as its leader, setting the stage for her to potentially become the nation's first female prime minister. At 64, Takaichi communicated on Saturday the importance of collaboration between the government and the Bank of Japan to foster demand-driven inflation, underpinned by increased wages and corporate profits. Although Japan may have exited deflation, Takaichi cautioned that the economic state remains delicate, as recent price rises have been mainly due to elevated raw material costs. She stressed the importance of not becoming complacent about the potential return of deflation. Sustainable economic growth, according to Takaichi, hinges on wage hikes to stimulate demand and enhance profitability. Furthermore, she indicated a possible reassessment of the 2013 joint statement between the government and the BoJ, which was initially aimed at combating deflation. Her election comes on the heels of Prime Minister Shigeru Ishiba's resignation, prompted by the LDP coalition losing its parliamentary majority.