Now her snap election seeking a mandate for debt-fuelled growth and tax cuts has triggered bond market tumult. With her political platform on the line, she can't drop her spending pitch to voters now. And as with Truss, it's an entirely self-made trap. That would increase the cost of funding for the government and could force a quicker showdown between Takaichi and central bank governor Kazuo Ueda. With all this on the docket, expect more market ructions in the run-up to elections, and possibly after.

Source: The Edge Markets January 21, 2026 17:03 UTC