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Japan’s Long-Term Interest Rates Surge Amid Tax Cut Concerns

Japan’s long-term interest rates are nearing 3% for the first time in 30 years, driven by persistent inflation and mounting market anxiety over fiscal shortfalls from Prime Minister Takaichi Sanae’s…

  • Long-term Japanese interest rates rose above 2.93% in August 2026
  • 8% consumption tax cut on food from April 2027 causing concerns
  • Potential funding shortfall of up to ¥5 trillion due to tax cut

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