Japan’s PM Calls Snap Elections in December

Japan’s Prime Minister Shinzo Abe has called an early election, two years ahead of schedule.

At a news briefing, he said he would dissolve parliament later this week and was also delaying a planned but unpopular increase in sales tax.

Mr Abe was elected two years ago with an ambitious plan to revive the economy, but has struggled to do so.

His popularity has fallen but he is expected to win the election, which will take place in mid-December.

“I will dissolve the lower house on 21 [November],” Mr Abe said.

Mr Abe’s party, the Liberal Democrats, already have a majority in the lower house, but analysts said Mr Abe hoped to consolidate power over an opposition party which is in disarray.

He also wants public support to continue to press ahead with “Abenomics”, his ambitious plan to kick-start Japan’s stagnant economic growth using heavy government spending and economic reforms.

“I need to hear the voice of the people,” Mr Abe said. “I will step down if we fail to keep our majority because that would mean our Abenomics is rejected.”

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza