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Takaichi’s big victory might not be mandate for big spending

Japan Times 04:41 PM UTC Mon February 09, 2026 Business
Takaichi’s big victory might not be mandate for big spending

Today's print edition

This is because the prime minister will likely face pressure from both fiscal hawks within the LDP and the bond market that will be watching her every move. As a result, she might have to choose a pragmatic path in terms of fiscal policy — and end up spending less than what many had hoped and not as much as some had feared.googletag.cmd.push(function() { googletag.display('div-gpt-ad-1499653692894-0'); });

“When the LDP scores an overwhelming victory, it brings a diverse range of people, making internal coordination much more difficult,” said Tomohisa Ishikawa, chief economist at the Japan Research Institute.

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