Long-term interest rates temporarily rose to nearly 3%, their highest level in about 30 years. Katagiri (片桐), manager of the Bank of Japan’s Hiroshima Branch, said there had been no impact in the prefecture at this point, while indicating that the branch would closely monitor developments.
Long-term interest rates temporarily reached 3%, their highest level in about 30 years, and market expectations of an early Bank of Japan rate hike are growing. Against this backdrop, Katagiri (片桐), manager of the Hiroshima Branch, said that no impact on businesses in the prefecture had been seen at this point.
However, rising interest rates could also affect personal consumption, and some have expressed the view that they could put downward pressure on demand for home purchases.
Katagiri (片桐) reiterated that higher long-term interest rates would tend to curb companies’ willingness to invest in capital and demand for home purchases, and said the branch would closely monitor developments going forward.
In summary, while no direct impact on the prefecture has been confirmed at this point, rising interest rates could affect personal consumption and investment decisions.