Abe Says Election Victory Vital for Beating Deflation

Prime Minister Shinzo Abe on Wednesday pledged to devote the next three years to pulling the Japanese economy out of decades of deflation, and said winning next month’s national election is vital to take control of the opposition-dominated upper house to follow through on his policy prescriptions.

“It’s not an easy task for a country to overcome 15 years of deflation…I’d say it’s a historic task,” Abe said at a press conference.

“For the next three years, I’ll concentrate on that (overcoming deflation) by ensuring political stability,” Abe said, adding that the economy has surely improved but “the hard part” lies ahead.

Abe was speaking after the opposition-controlled upper house passed a last-minute censure motion against him on the final day of the first Diet session since he took office in late December. Political parties are gearing up for the crucial House of Councillors election, which is expected on July 21.

The prime minister said ending the so-called “divided Diet” would help accelerate economic growth. The ruling coalition’s landslide victory in last Sunday’s Tokyo metropolitan assembly election came as a vote of confidence as the ruling bloc aims to secure an overall majority in the upper house.

Abe’s Liberal Democratic Party and its coalition partner the New Komeito party secured a majority in the House of Representatives in a general election last December. But they need to rely on opposition support to pass legislation in the House of Councillors.

via Mainichi

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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