Economics Daily

The Catch-22 Confronting Japan’s Takaichi After Her Resounding Election Victory

Concerns over the fiscal trajectory are weakening the yen, thereby driving up import prices and exacerbating price pressures.

The rate of the yen against the US dollar displayed outside a securities firm in Tokyo, Japan, on Monday, Feb. 9, 2026. Photographer: Kiyoshi Ota/Bloomberg

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By Malcolm Scott

February 9, 2026 at 12:03 PM UTC

This article is for subscribers only.

I’m Malcolm Scott, international economics editor in Sydney. Today we’re looking at Japanese Prime Minister Sanae Takaichi’s big election win. Send us feedback and tips to ecodaily@bloomberg.net. And if you aren’t yet signed up to receive this newsletter, you can do so here.

Japanese Prime Minister Sanae Takaichi has led the ruling Liberal Democratic Party to an historic landslide win that paves the way for her to push through a potentially market-rattling policy program.