Former Bank of Japan official: Even if Koizumi Naomirewins the Liberal Democratic Party's presidential election, the Bank of Japan may still raise interest rates in October.

Former Bank of Japan official Tomoyuki Shimoda said on Thursday that even if Katsunao Takahashi, who supports aggressive easing monetary policy, wins the leadership election within the ruling party and becomes the next prime minister, the Bank of Japan may still raise interest rates in October. As one of the frontrunners expected to win the election on October 4, Katsunao Takahashi has gained attention for her strong opposition to the Bank of Japan raising interest rates and her call to increase spending to stimulate the economy. The possibility of her becoming the next prime minister of Japan has led some market participants to buy yen and Japanese government bonds, as they believe this could prevent the Bank of Japan from raising interest rates. Shimoda believes that the outcome of this leadership election will have limited impact on monetary policy. "Although she may support increasing fiscal spending, I believe she cannot implement policies that could lead to a depreciation of the yen."