Kuroda's Stimulus Saves Japan $45 Billion, Easing Debt Pressures
- Driving down borrowing costs is saving the government money
- But low rates hurt savers, pensioners and even the BOJ itself
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Haruhiko Kuroda’s massive monetary stimulus has saved Japan’s government about $45 billion in borrowing costs, helping the world’s most indebted developed nation pay for its debt pile.
Japan paid 7.4 trillion yen ($68 billion) to service the 630 trillion yen in bonds it sold in the fiscal years 2013 through 2017. That means it saved 4.9 trillion yen, compared with what it would have paid if average borrowing costs in that period had been the same as in 2012.