The second defeat in the national elections turned out to be decisive for Ishby, whose term of office contributed to the loss of the parliamentary majority by the ruling coalition in both chambers. As IShiba himself said, voting planned for Monday regarding the acceleration of elections of the leader of the Liberal Democratic Party (LDP) will be canceled. Commentators speculated that this voting could ultimately take the form of a vote of no confidence in the prime minister, as indicated by public opinion research supporting early party elections.
The withdrawal of Ishby opens the way to a new race for leadership in LDP, but it already arouses uncertainty on financial markets. In recent days, Japanese Jen has lost its value, ranging in the group of the weakest G10 currencies, and the profitability of long -term government bonds has reached record multi -excavations. In the face of these changes, investors will follow the process of choosing a new party leader, which at the same time will have to gain the support of a divided parliament to take the position of prime minister.
Despite the loss of the majority in the upper room of the parliament, the LDP coalition still has an advantage in the lower chamber, which puts its candidate in a favorable position in the race for the chair of the prime minister. However, as the political situation shows, victory in party elections does not guarantee automatic takeover of governments.
Among the claimants to LDP leadership, Sanae Takichi, a former interior minister, who took second place in the previous race for this position. Her policy focuses on stimulatory funds, and according to economic analysts, such would probably be a supporter of the more conservative approach of the Bank of Japan to interest rate increases.
The process of choosing a new leader in LDP requires gathering at least 20 votes of support among parliamentarians. Then the winner will face the need to win a vote in the Japanese parliament to take the position of prime minister. The decision of the Liberal Democratic Party in this matter will be an important clue for the national and international public opinion regarding the future political direction of Japan.
