Reflationistbacked Takaichi among frontrunners in LDP race
Takaichi says stupid for BOJ to raise rates now
Analysts see risk Takaichi delays BOJ rate hikes, weakening yen
BOJ Ueda says Japan 39;must avoid returning to deflation39;

TOKYO, Sept 25 Reuters Political uncertainty and the surprise prominence of a reflationistminded candidate in Japan39;s ruling party leadership race may add pressure on the central bank to go slow on raising interest rates further away from historic lows.

Already, the Bank of Japan BOJ has toned down some of its signaling around future rate hikes as U.S. recession risks and jittery financial markets cloud the economic outlook.

Now, a fresh complication comes from politics as Friday39;s race to choose the ruling Liberal Democratic Party39;s LDP new leader, who in turn becomes next prime minister, heats up.

Sanae Takaichi, a 63yearold advocate of deceased former premier Shinzo Abe39;s Abenomics stimulus policies, is emerging as among three of the nine candidates likely to make it to the runoff.

The once darkhorse candidate, who could become Japan39;s first female leader, is a sole but vocal opponent of further interest rate hikes.

What we39;re seeing now is costpush inflation. We must keep monetary policy accommodative until real wages stably turn positive, Takaichi told reporters on Sept. 19.

I think it would be stupid to raise interest rates now, she said in an interview streamed online on Monday, warning that doing so could push…