The Bank of Japan "will not face any political hurdle for hiking rates further," Ryota Abe, economist at the global market and treasury department of Sumitomo Mitsui Banking Corporation, told CNBC.
Ishida had beaten Economic Security Minister Sanae Takaichi in the final round of the Liberal Democratic Party election on Friday, sending the yen into a volatile session. A higher interest rate typically strengthens the yen and puts pressure on Japanese stock markets, which are heavily weighted by exporters. A strong yen would then make their exports less competitive.had weakened against the dollar early on Friday as Takaichi won the first round of voting, but later reversed course and strengthened as Ishiba won the runoff vote after markets closed.