THe LDP are seen as the favourites going into the election. Their party leader and former Japan PM Shinzo Abe is a well known critic of the BoJ. If elected the LDP wants to change the way the Central Bank deals with its inflation target and possible debt purchasing program.
Japan’s main opposition Liberal Democratic Party (LDP) said on Wednesday that on its return to power it would set a 2 percent inflation target with an eye to revising the law governing the Bank of Japan so as to boost cooperation between the government and the central bank.
A Dec.16 election for Japan’s lower house is seen likely to return the long-dominant LDP to power with conservative former Prime Minister Shinzo Abe at the helm.
In its campaign platform unveiled on Wednesday, the LDP called for bold monetary easing through cooperation between the government and the central bank on debt management, but it made no mention of Abe’s calls for the BOJ to buy debt to finance infrastructure projects.
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