Bank of Japan officials see little need to shift their policy stance of gradually raising interest rates in the wake of Prime Minister Shigeru Ishiba’s latest election setback, according to people familiar with the matter.

Heading into the most consequential Japanese upper house election in memory and a possible defeat for the coalition of Prime Minister Shigeru Ishiba, investors are weighing whether a record sell-off in the nation's debt has further to run.

The success of the Sanseito party could reshape Japan’s domestic and foreign policy. It also aligns Japan with political trends in many other parts of the world.

“It’s possible Japan might experience its own triple whammy of market turmoil, perhaps a Japanese version of the ‘Trump crisis’ that occurred in April,” said Hideo Kumano, an economist at Dai-Ichi Life Research Institute, referring to a simultaneous fall of stocks, currencies and bonds.

Japan's election outcome may put the central bank in a double bind as prospects of big spending could keep inflation elevated while potentially prolonged political paralysis and a global trade war provide compelling reasons to go slow on rate hikes.

The dollar remained stable on Tuesday as investors focused on trade negotiations before the August 1 tariffs deadline, while the yen showed slight fluctuations following Japan's upper house election.

While foreign nationals do not have the right to vote unless they naturalize, as residents they contribute to the economy, pay taxes and raise families in Japan. As electoral results could impact their lives, The Japan Times asked several foreign residents to weigh in. Interviews have been edited for brevity and clarity.

Moody's Ratings said on Tuesday the potential impact of a cut to Japan's consumption taxes on the country's sovereign debt rating will depend on the "scope, magnitude and permanence."

TOKYO (Reuters) -Japan's upcoming upper house election could have important implications for fiscal health and credit ratings if it brings large tax cuts, Moody's Ratings said. The July 20 vote is ...

Opinion polls suggest Ishiba’s Liberal Democratic Party may fall short of a majority in Upper House elections.