Japanese voters go to the polls on July 21 to elect half of the upper chamber of parliament. With the Prime Minister Abe and his cabinet enjoying strong support and the economy recovering, even if deflation has not been completely eradicated, the coalition government is widely expected to secure a majority. This will end the split in the Diet and ensure Abe has the legislative support for his economic program.
Previously, it had appeared the Abe would not be content with a simple majority. It was thought a 2/3 majority was desired to secure sufficient support for his political agenda, which includes constitutional changes to strengthen its military capabilities. This seems considerably less likely now. An important implication of this is that the focus on Abenomics will not be diluted...
Posted in: Forex
