BOJ Is Focus in Japanese Election Campaign

TOKYO—Monetary policy has emerged as a key issue in Japan's upcoming general election, with the head of the main opposition party calling for radical steps to beat deflation, raising the possibility that the Bank of Japan may come under the control of the doves should he become the nation's next leader.

Shinzo Abe, the head of the Liberal Democratic Party, has caused a stir in financial markets by advocating the central bank undertake extremely aggressive measures: from negative interest rates to the underwriting of government bonds.

The former premier's remarks sent stocks higher and the yen weaker last week on ...

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