Political Turmoil Follows Prime Minister Ishiba’s Interest Rate Decision
Following a meeting with prime Minister Ishiba, the Bank of Japan (EDA) decided to raise interest rates without prejudice. This decision has triggered meaningful internal dissent within the ruling party, centering on calls for leadership change and a re-evaluation of the party’s direction.
Prime Minister Ishiba initially stated his intention to take duty for recent setbacks, specifically regarding the performance of the party in the two Houses of Japan. Though, reactions within the party have been varied, with some advocating for a focus on policy promotion over internal political maneuvering.
Representative Terada Minoru voiced concerns about the timing of the interest rate decision, noting the Prime Minister’s earlier statements suggesting it was a strategically opportune moment. Terada cautioned against allowing political considerations to influence economic policy and expressed reservations about proceeding with a presidential election under the current circumstances. Representative Tanahashi Yasufumi similarly argued against using the situation as a pretext for a leadership change, advocating instead for the dissolution of the House of Representatives and a general election allowing for broader voter participation.
Calls for Ishiba’s resignation are growing. Yasutaka Nakasone,Youth director General,directly urged the Prime Minister to voluntarily resign,emphasizing the need for accountability for his own decisions.Former Economic Security Minister Kobayashi Takayuki announced his intention to sign a document calling for a special presidential election, contingent on no change in the current situation. Chief Advisor Aso Taro also reportedly indicated support for moving forward with a presidential election during a faction meeting.
The situation is further complicated by a series of resignations. Secretary-General Moriyama Hiroshi resigned on the 2nd, but Prime Minister Ishiba has left the handling of further advances and resignations to his discretion. Reports indicate that General Affairs Chairman Suzuki Shunichi, Chairman of the Policy Research Council Onodera Itsinate, and Chairman of the election campaign committee, Kihara Seiji, are also considering resigning, raising questions about the party’s ability to rebuild its leadership structure.
Moriyama’s resignation is particularly notable given his long tenure as chairman of the National Dialog Committee and his role in navigating the party’s shift to a minority ruling position through negotiations with opposition parties. Ishiba acknowledged Moriyama’s value, stating he is “an irreplaceable person with others.”
Despite the internal turmoil, recent polls suggest a slight recovery in the cabinet’s approval ratings.A Nihon Keizai Shimbun survey conducted on August 29th and 31st showed approval reaching around 40%, a six-month high, compared to 32% in July. A Kyodo News survey conducted approximately a week prior also indicated a rise to 35.4% from July’s 23%.
