Takashi Sanae is expected to win the House of Representatives election, and the Japanese yen is likely to come under pressure.
According to the export poll forecast by Japan's public broadcaster NHK, the ruling Liberal Democratic Party led by Prime Minister Takaichi Sanae is expected to win a majority of seats in the lower house election on Sunday. NHK predicts that the Liberal Democratic Party will win between 274 and 328 seats out of the 465 seats in the lower house, far exceeding the 233 seats needed to secure a majority. If their ruling partner, the Komeito party, is included, they could control up to 366 seats. Takaichi Sanae's promised tax reduction policies have caused turmoil in the financial markets. Seiji Inada, Managing Director of consulting firm FGS Global, stated, "If Takaichi wins a landslide victory, she will have more political space to fulfill key promises, including reducing the consumption tax. The market may react in the coming days, and the yen may once again face downward pressure."
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