Election outcome likely to muddle BoJ plans

Seeking stability: The BoJ’s headquarters in Tokyo. The central bank ended negative interest rates in March and raised short-term rates to 0.25% in July. — AFP

TOKYO: The risk of Japan ending up with a minority coalition government after the upcoming general election is raising concerns that the central bank could face complications in its quest to gradually wean the nation off decades of monetary stimulus.

Several recent polls have shown the possibility of the ruling coalition losing its majority in Parliament, which could cost premier Shigeru Ishiba his job or force his Liberal Democratic Party (LDP) to look for an additional coalition partner to stay in power.