Japan’s political scene has shifted dramatically after last week’s election, raising questions about the Bank of Japan’s next move. Analysts expect the central bank to weigh the new administration’s stance on inflation and growth before tweaking its ultra‑loose stance. The FT’s guide to the week ahead outlines key risks.

Japan’s monetary policy has relied on negative rates and yield‑curve control to keep borrowing cheap. A shift in political priorities could prompt the Bank of Japan to reassess its policy mix, potentially tightening rates or ending YCC. Investors watch for signals that the central bank will align with the new government’s economic agenda.

Market participants will gauge the Bank of Japan’s policy statements and minutes for clues. If the central bank signals a pivot, bond yields could rise, and the yen might strengthen against the dollar. The FT will track the bank’s actions closely, offering daily updates on how political shifts influence monetary policy.