Japan's Takaichi & BOJ's Ueda Hold First Talks Since Election Win

Japanese Prime Minister Sanae Takaichi and Bank of Japan Governor Kazuo Ueda are set for their first meeting since Takaichi’s election victory on Monday, a session closely watched by markets and policymakers.

This meeting comes amid rising speculation over the future of Japan’s monetary policy, with inflation remaining high and the yen strengthening. Their last discussion in November 2025 preceded the BOJ’s decision to raise interest rates in December, marking the end of ultra-loose policy after inflation stayed above the 2% target.

Takaichi, who led the ruling Liberal Democratic Party to a landslide win in the February 8 election, has generally supported accommodative monetary and fiscal policies and has favored a weaker yen to support exports.

• Takaichi and BOJ Governor Ueda hold crucial talks on Japan's economic policy
• Markets watch closely as Japan's Prime Minister and BOJ Governor discuss future monetary moves
• Takaichi’s election win strengthens her mandate, influencing upcoming BOJ appointments

Although she has kept quiet on specific BOJ policies since the election, her victory gives her a stronger political mandate and the authority to fill two upcoming vacancies on the BOJ’s nine-member policy board, appointments likely to influence the central bank’s future direction.

Markets are closely monitoring whether the meeting will address the timing of further rate hikes, which could come as soon as March or April after the BOJ raised its short-term policy rate to a 30-year high of 0.75% in 2025. The recent rebound in the yen, which had reached historic lows, may also be discussed as policymakers balance inflation risks with economic stability.

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Although the BOJ operates independently under Japanese law, its policies are influenced by political ties. Investors are eager to see whether this first meeting post-election signals continuity or a shift in Japan’s macroeconomic strategy.