SMBC Nikko Securities believes that the likelihood of "high interest rates, a weak yen, and high stock prices" has increased further following the Liberal Democratic Party's single-party victory in the House of Representatives election, which saw the party win more than two-thirds of the seats. As Takaichi's administration's policies move into the implementation phase, concerns about increased government bond issuance remain, and the bank believes that long-term interest rates are unlikely to fall. Regarding the foreign exchange market, the bank predicts that the yen's weak trend will continue due to yen selling flows driven by actual demand and real interest rates moving into negative territory due to prolonged inflation. Given that future corporate earnings have shown enough strength to absorb rising interest rates, the bank expects stock prices to rise even with high interest rates.