Japan is moving into a phase where rising interest rates is a trend – Ishiba

• Japan has experienced low interest rates for a very long period
• So, some quarters of the public don’t know what it is like for interest rates to rise
• When interest rates rise, government’s debt-financing costs will increase; weigh on spending
• Government must ensure public, market trust in Japan’s finances is maintained

It’s more so a case over the past year I would say. Right now, the BOJ is finding it tough to push forward with the next rate hike. Markets are also sensing that with only ~18 bps priced in by year-end for now. No rate hikes are expected through the summer at the very least.

This article was written by Justin Low at www.forexlive.com.