What Markets Expect From Takaichi: Amova's Fink

• Takaichi's election victory provides political capital, but she must build market trust and project fiscal responsibility.
• Fink questions the feasibility of suspending food taxes without issuing new bonds, noting the risk of fiscal policy 'fighting itself' if it doesn't align with the central bank's inflation-fighting mandate.
• The Bank of Japan's independence and its role in ensuring price stability are crucial, with the current environment demanding a different policy mix than the past deflationary era.

Naomi Fink discusses the market's expectations for Prime Minister Sanae Takaichi following her election win, emphasizing the need for fiscal responsibility and a healthy dialogue with markets. She highlights the potential for fiscal policy to conflict with monetary policy, especially regarding inflation, and stresses the central bank's primary role in price stability.