Japan Carmakers Squeeze Households With Higher Loan Rates

Japan’s automakers have begun hiking loan rates as a historic central bank pivot to unwind three decades of ultra-loose monetary policy trickles down to consumers, raising household credit costs.

More than a year after the Bank of Japan’s first interest rate increase in 17 years, the volatile march higher in super-long bonds is raising the cost of servicing loans, including car repayments — making the auto sector one of the first key pain points as households look to tighten their belts.