The Bank of Japan raised its policy rate to 1.25%. While benefits are expected for older people with substantial financial assets, the burden will increase for working-age people with mortgages and other loans. The knock-on effects will need to be monitored closely.
The Bank of Japan raised its policy rate to 1.25% on the 18th. The move could benefit people, particularly among older generations, who hold substantial assets.
An annual positive effect of ¥400 billion is expected across households, with interest income per household projected to increase by approximately ¥6,000 a year. Some, however, have pointed out that the increase in loan burdens could outweigh the benefits.
Naoki Hattori (服部 直樹), chief economist at Mizuho Research Institute, said that an acceleration in rate hikes could widen disparities between generations. As this is a members-only article, the remainder has been omitted.