The Bank of Japan's policy rate hikes are pushing up banks' deposit and lending rates, and the article explains the view that the resulting chain of rising interest rates could affect personal consumption as well as companies' sales and wages by increasing the burden of mortgage repayments.
When the Bank of Japan raises its policy rate, banks tend to raise their deposit rates, potentially increasing the interest we receive.
At the same time, lending rates on mortgages and auto loans also come under upward pressure, potentially increasing the interest paid on new borrowing and variable-rate loans.
It is explained that rising interest rates tend to weaken the economy by restraining household consumption and encouraging people to postpone home purchases and car replacements, thereby curbing growth in companies' sales, profits and wages.