Japan funding conditions still loose despite interest rate hikes
TOKYO: Major Japanese lenders see increased demand for funds among corporate borrowers compared with three months ago, a survey showed on Thursday, indicating the central bank’s recent interest rate hikes have yet to tighten financial conditions.
Despite the Bank of Japan's recent interest rate hikes, financial conditions in Japan remain loose, according to a survey conducted by major Japanese lenders. The survey, which was conducted from September 9 to October 13, found that the ratio of banks witnessing an increase in corporate fund demand rose to +3 compared to -1 in a survey three months prior.
This positive reading suggests that more banks are observing a surge in demand for corporate funds, while fewer are noting a decline. The Bank of Japan had previously raised its policy interest rate to a 31-year high of 1.25% on September 18, signaling a shift towards maintaining control over the risk of inflation overshooting its 2.0% target.
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- Japan funding conditions still loose despite interest rate hikes, survey shows channelnewsasia.com
