Core Viewpoint - The election of Sanae Takaichi as Japan's likely first female prime minister is expected to influence the Bank of Japan's (BOJ) monetary policy, particularly in delaying interest rate hikes due to her expansionist economic policies [1][4]. Group 1: Economic Policies - Takaichi is the only candidate advocating for significant government spending and a loose monetary policy, aiming to reflate demand and the broader economy [1][3]. - She emphasized the need for demand-driven inflation, where rising wages would stimulate demand and lead to moderate price increases that benefit corporate profits [4]. Group 2: Impact on Monetary Policy - Analysts predict that Takaichi's leadership will likely result in the BOJ refraining from raising interest rates in the near term, particularly during the upcoming meeting on October 30 [4][5]. - There is a possibility that the BOJ may adopt a more cautious approach to rate hikes, potentially delaying any increases until early next year [5]. Group 3: Market Expectations - Prior to Takaichi's victory, markets had priced in over a 60% probability of a rate hike this month, driven by sustained inflation above target levels for over three years [7].