📉 Japan's households and businesses face fresh financial pressure after the Bank of Japan (BOJ) raised interest rates this month, with experts warning of ripple effects across Asia's second-largest economy. Hideo Kumano, chief economist at Dai-ichi Life Research Institute, told CMG the move could 'reshape spending patterns in 2026 and beyond.'
💸 Mortgages are set to climb for millions as rates rise – a gut punch for young families already navigating Tokyo's sky-high living costs. Private investment, crucial for Japan's tech-driven growth strategy, might also cool as borrowing gets pricier. Meanwhile, the government's ¥1.3 quadrillion ($8.6 trillion) debt pile could become even costlier to manage.
🗣️ 'This isn’t just about numbers – it’s about real people recalculating their futures,' Kumano said, noting the timing coincides with Japan's push to boost wages and productivity. Gen-Z workers entering the job market next spring may feel the pinch most acutely.
🌏 The BOJ’s shift could impact Asian markets, where Japan remains a key investor. Analysts suggest watching how this plays into regional trends like Vietnam's manufacturing boom and India's renewable energy push.
