Centrist Reform Alliance, CDP, and Komeito Begin Formal Talks for Three-Party Merger, Aiming for New Framework in Autumn

Centrist Reform Alliance, CDP, Komeito Begin Merger Talks, Aim for New Framework in Autumn The secretaries-general of the Centrist Reform Alliance, the Constitutional Democratic Party, and Komeito held their first 'Three-Party Organizational Issues Council' on the 2nd, and agreed on a policy to aim for launching a new framework in time for the autumn extraordinary Diet session. Specific details of the merger (whether a three-party merger or a two-party precursor) will be worked out later, but they will accelerate discussions on three points: policy, organization, and elections. 123

LDP Proposes Suspension of Ishin's Two Bills to Prioritize Imperial House Law Deliberations, but Opposition Pushes Back LDP Secretary-General Shunichi Suzuki on the 2nd proposed suspending deliberations on the House of Representatives seat reduction bill and the deputy capital creation bill in order to prioritize deliberation of the Imperial Household Law amendment. The five opposition parties demand that the two bills be abandoned, and the discussion remains at a standstill. Nippon Ishin leader Yoshimura emphasized, 'We will definitely see this through in the current Diet session,' and the normalization of the Diet remains uncertain. 45

Imperial Household Agency Chief 'Takes Seriously' Cabinet Decision on Imperial House Law Amendment Imperial Household Agency Director-General Kuroda stated at a regular press conference on the 2nd regarding the cabinet decision on the Imperial House Law amendment that it is 'the result of lengthy discussions' and showed a stance of taking it seriously. The amendment, which centers on maintaining the status of female imperial family members after marriage and allowing male-line male adoptees from former imperial families, was already reported to the Emperor on June 30. 67

Prime Minister Takaichi Visits India, Confirms Economic Security Cooperation with PM Modi Prime Minister Takaichi met with Indian Prime Minister Modi in New Delhi on the 2nd, and agreed to deepen cooperation in five areas including AI, economic security, clean energy, and defense. Aiming to reduce dependence on China, such as through rare earth development and supply chain strengthening, they also issued a joint declaration. The two leaders also agreed to hold a foreign and defense ministerial meeting (2+2) within the year. 8910

Expectations for Early BOJ Rate Hike Intensify, 10-Year JGB Yield at 2.7%, Highest in 29 Years Amid a weak yen and robust economy, expectations for an early rate hike by the Bank of Japan are intensifying. In the market, the probability of an additional rate hike by October has risen to over 60%. The Ministry of Finance on the 2nd set the coupon rate for 10-year government bonds issued in July at 2.7% per year, a high level in about 29 years and 1 month. The three megabanks and others will also raise their short-term prime rates from August. 111213

Government Softens Target of 1,500 Yen Minimum Wage, May Postpone Achievement Timeline In the draft of the basic policy guidelines, the government has revised the target of 1,500 yen average national hourly wage from a deadline of 'the latter half of the 2020s' to a more flexible expression. This effectively means Prime Minister Takaichi has allowed a postponement, likely to ease the burden on small and medium-sized enterprises. 14