Survey: Nearly half of Japanese companies believe the central bank’s interest rate hike will have a negative impact
A Reuters survey released on Thursday showed that nearly half of Japanese companies are being negatively affected by the Bank of Japan's interest rate hikes. Rising borrowing costs have not only eroded corporate profits but also inhibited capital investment. The Bank of Japan will end its negative interest rate policy in 2024 and raised the short-term policy interest rate from 0.75% to 1.0% in June, setting a 31-year high. The Bank of Japan also said it was ready to further tighten monetary policy to ease inflationary pressures caused by energy shocks caused by conflicts in the Middle East. About 5% of the companies surveyed said that the Bank of Japan's interest rate hike had a significant negative impact on operations, 44% said it had a negative impact to some extent, and 46% said it was not affected. The remaining 5% said rising interest rates had some degree of positive impact on their business. "Compared with last year, the interest burden has increased sharply. If interest rates are raised further, it will have a significant impact on the company," the person in charge of a machinery manufacturer wrote in the questionnaire. When asked about subsequent interest rate hikes When it comes to timing, 12% of the companies surveyed chose the current July-September quarter, 27% chose the fourth quarter, 27% chose the first half of 2027, and 26% said they did not want to raise interest rates at any time. The Bank of Japan's next policy meeting is scheduled for July 30-31.