Japan PM Ishiba set to resign, source says

7/9/2025 17:00

Japanese Prime Minister Shigeru Ishiba is set to resign on Sunday, a source close to the premier said, ushering in a potentially lengthy period of policy paralysis at a shaky moment for the world's fourth-largest economy.



Ishiba, 68, will hold a press conference at 6 p.m., the government said. His office declined to comment on whether he would resign.



Since the former defence minister came to power less than a year ago, his coalition has lost its majorities in elections for both houses of parliament amid voter anger over rising living costs.



He had refused calls from within his Liberal Democratic Party - which has ruled Japan for almost all of the post-war era - to step down and take responsibility for the upper house loss in July.



Instead, he has focused on trying to iron out the final details of a deal with the United States on trade tariffs that have roiled Japan's critical automotive industry.



Concern over political uncertainty led to a sell-off in Japan's yen currency and its government bonds last week, with the yield on the 30-year bond hitting a record high on Wednesday.