Market News
Japan's deepening political woes cloud budget, rate hike timing - REUTERS
By Takaya Yamaguchi and Leika Kihara
Summary
- LDP debates holding rare leadership race, timing uncertain
- If not held in September, race could be put off till next year
- Some in LDP see Ishiba's resignation as inevitable
- BOJ may favour avoiding unwanted political attention
TOKYO, Aug 11 (Reuters) - Japan's deepening political uncertainty risks prolonging policy paralysis that could affect the drafting of next year's budget and the timing of the central bank's next interest rate hike, analysts say, clouding the outlook for the fragile economy.
Prime Minister Shigeru Ishiba is facing increased calls from within his ruling Liberal Democratic Party (LDP) to step down and take responsibility for the party's huge defeat in an upper house election in July and a lower house poll last year.
