Japan eyes fiscal 2027 assumed bond interest rate at 3.8%
The rate, used to calculate the government's debt-servicing costs, is expected to be raised significantly from 3% in the fiscal 2026 budget.
Japan is considering setting its assumed bond interest rate at 3.8% for the fiscal 2027 budget request, according to sources cited by the Japan Times. This rate, used to calculate the government's debt-servicing costs, is expected to be significantly higher than the 3% used in the fiscal 2026 budget, reflecting recent increases in long-term interest rates.
The rise in the assumed rate is due to concerns over the expansionary fiscal policy of Prime Minister Sanae Takaichi and the Bank of Japan's anticipated policy rate hikes, as well as global inflationary pressures.
Brief written by urgent.news from Japan Times's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
