🔔 Recently, the Bank of Japan (BOJ) surprised markets with its first rate hike in years. Hideo Kumano, chief economist at Dai-ichi Life Research Institute, says this move packs several punches for households, businesses and the government.
🏠 Mortgage pressure: Homeowners across Japan will see their monthly loan payments climb as borrowing costs rise. If you’ve been planning to buy a place in Tokyo, Osaka or beyond, expect tighter budgets and sharper decisions on down payments and loan terms.
💼 Investment slowdown: Higher interest rates make companies think twice before expanding. From tech startups in Fukuoka to manufacturers in Nagoya, private investment could lean towards caution, delaying new projects and hiring plans.
💰 Government debt costs: Japan’s public debt already carries hefty interest bills. Kumano warns that even a small uptick in rates will swell the government’s debt-servicing costs, potentially squeezing budgets for public services.
Stay tuned as households, firms and policymakers adjust to this fresh rate reality.🔍
Reference(s):
BOJ rate hikes to weigh on mortgages and investment: Japanese expert
cgtn.com
