Policy settings will likely remain stable in the wake of the resignation of Japan’s long-serving prime minister, Shinzo Abe, says Fitch Ratings. However, the resignation brings forward the policy uncertainty we had anticipated in the run-up to the general election, which is due by October 2021. Adjustments to policies that affect the long-term outlook for the public finances and growth potential could have implications for the country’s sovereign rating, as we flagged when we revised Japan’s sovereign Outlook to Negative on 28 July, and affirmed the ‘A’ rating. The ruling LDP party is expected to elect a … (full story)
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