Japan govt to raise long-term rate estimate to 2.1% in FY2025/2026, Nikkei reports
TOKYO - Japan's government plans to raise its long-term interest rate estimate used to compile the state budget to 2.1% for the next fiscal year from the current year's 1.9%, the
As a result, debt-servicing costs are estimated to increase to 28.9 trillion yen for the year starting in April next year, up sharply from 27 trillion yen for the current year, according to the Nikkei. The interest rate estimate is automatically calculated, taking into account the underlying bond yield plus a precautionary 110 basis points in case interest rates spike.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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