More Japanese Companies See Downside to Rising Rates

An increasing percentage of companies in Japan see rising interest rates having a negative impact on their business, underscoring the challenges for the Bank of Japan as it normalizes policy after years of ultra-low borrowing costs.

About 44% of Japanese companies saw more downside to higher rates than upside in a December survey, nearly 7 percentage points higher than April 2024, according to research firm Teikoku Databank. They included real estate firms worried that rising mortgage rates would crimp housing demand and companies saying they may need to hold off on taking out loans.