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Nearly 40 Pct of Japan Firms Downbeat about Higher Interest Rates

Nearly 40 Pct of Japan Firms Downbeat about Higher Interest Rates

   Tokyo, May 22 (Jiji Press)--Nearly 40 pct of companies in Japan are concerned about higher interest rates following the Bank of Japan's decision earlier this year to end its negative interest rate policy, a survey by Teikoku Databank Ltd. showed Tuesday.
   The survey found that 37.7 pct of responding companies believe that higher interest rates have more adverse effects than positive ones on their operations. Many of them are concerned about rising borrowing costs.
   Companies need to become more financially resilient after the central bank's decision, Teikoku Databank said. The BOJ in March raised short-term interest rates to a range of zero to 0.1 pct from minus 0.1 pct, its first rate increase in 17 years.
   The Teikoku Databank survey showed that 33.2 pct said negative and positive effects from higher interest rates are offset from each other. If higher rates drive the yen higher, import costs will decrease.
   The survey found that 2.8 pct said higher interest rates have more advantages than disadvantages. In the financial sector, 14.6 pct said so, citing a rise in lending rates.

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AFP-JIJI PRESS NEWS JOURNAL


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