New LDP Leader Vows to Address Rising Prices

Tokyo, Oct. 4 (Jiji Press)–Sanae Takaichi, the new leader of Japan’s ruling Liberal Democratic Party, vowed to focus on efforts to cope with rising prices at her inaugural press conference on Saturday, noting that she will not rule out a consumption tax cut. Takaichi, who is now likely to become Japan’s next prime minister, expressed her intention to compile an economic stimulus package soon, including an increase in subsidies for local governments to support small businesses. At the same time, Takaichi said that it is too early to consider that deflation is over in Japan. “The best kind of inflation is one led by wage increases, which boost demand and lead to moderate price rises,” she said. On monetary policy, Takaichi said that, while the government should take responsibility for it, the Bank of Japan should consider the “best means.” She said her government would examine whether the 2013 government-BOJ policy accord is still the best one. She also indicated that the LDP will hold internal talks on a refundable tax credit program. Regarding personnel appointments, Takaichi emphasized that she will gather the power of “all (LDP) members and all generations,” including her four rivals in the party leadership election. Furthermore, she suggested her willingness to appoint those who have been embroiled in a political funds scandal that caused many intraparty factions to disband. “It won’t affect my personnel appointments,” she said. Takaichi said she plans to finalize party executive appointments as soon as possible in the week from Sunday. The party’s secretary-general, in particular, “should be someone who can engage with all parties and has a broad view of the party,” she added. In seeking to expand the ruling coalition, the new LDP leader stressed the need for policy alignment regarding constitutional reform, diplomacy, security and fiscal policy. She also noted the importance of ensuring transparency in political funds management. Meanwhile, Takaichi said she will “make an appropriate decision” on whether to visit the war-related Yasukuni Shrine during her tenure. “It should definitely not be viewed as a diplomatic issue,” she stressed. She also underscored the importance of strengthening the Japan-U.S. alliance and expressed her commitment to implementing the two countries’ tariff agreement. END [Copyright The Jiji Press, Ltd.]