Takaichi Faces Autumn Test Amid Trump Talks and BOJ Rate Hike

Japanese Prime Minister Sanae Takaichi is facing pressure to manage relations with Washington and Beijing as she enters the autumn political season. Her recent meeting with U.S. President Donald Trump in New York highlighted Japan's alliance with the United States, a key aspect of her agenda.

Takaichi described her exchange with Trump as timely, emphasizing that the two leaders discussed issues concerning China. The talks came shortly before Trump's meeting with Chinese President Xi Jinping, giving Takaichi an opportunity to convey Japan's concerns directly before Washington and Beijing moved into their own summit diplomacy.

The Bank of Japan's latest rate hike has become another challenge for Takaichi's government. The central bank raised its policy rate to 1.25% on September 17, the highest level in 31 years, signaling a shift from encouraging inflation toward preventing it from overshooting.