Sanae Takaichi Set to Become Japan’s First Female PM

Japan’s ruling Liberal Democratic Party elected Sanae Takaichi as its new leader, positioning the 64-year-old to become the country’s first female prime minister.

Speaking on Saturday, Takaichi said the government and the Bank of Japan must work closely to achieve demand-driven inflation supported by rising wages and corporate profits.

She noted that while Japan “may no longer be in deflation,” the economy remains fragile, as higher raw material costs have largely driven recent price gains.

“It’s too early to be complacent” about the risk of returning to deflation, she warned.

Takaichi emphasized that sustainable growth requires wage increases to stimulate demand and boost profits.

She also signaled a review of the 2013 joint statement between the government and the BoJ, which centered on defeating deflation.

Her election follows the resignation of Prime Minister Shigeru Ishiba, who stepped down after the LDP’s coalition lost its majority in both chambers of parliament.