An early election is due to be held as Japan's Prime Minister Shinzo Abe announced on October 22, and BNP sees the chances of the ruling Liberal Democratic Party to achieve a comfortable win to remain in power.
The bank praised the measures taken by the Bank of Japan, pointing out that the Bank's actions so far are positive. Now the focus will be on fiscal policy after monetary policy has reached the maximum possible level, so BNP expects no fundamental change in the Bank of Japan policy.
Shinzo Abe announced the dissolution of parliament on September 28 after returning from his visit to Washington to the headquarters of the United Nations General Assembly amid intense criticism of the decision.
