60 pct of Japan firms want BOJ to pause rate hike: poll
Nearly 60 per cent of companies in Japan do not want the Bank of Japan to raise interest rates over the next year, a poll by Tokyo Shoko Research Ltd. showed Friday (February 13).
The results indicated that many companies are concerned that higher borrowing costs will increase pressure on their finances.
In the survey on monetary policy over the next year, 59.6 per cent of companies, the largest proportion, said that the central bank should hold rates steady, while 23.6 per cent said that lowering rates would be advisable, and only 16.6 per cent suggested raising them.
The survey found that 52 per cent said that borrowing rates had already risen since the BOJ raised its policy interest rate to 0.75 per cent in December.
Asked about the impact of the central bank's latest interest rate hike, 57.1 per cent cited lower profitability, 35.4 per cent mentioned worsening finances, and 24.8 per cent noted a reduction or cancellation of capital investments.
The survey was conducted online between January 30 and February 6, with valid responses coming from 5,170 companies.
[Copyright The Jiji Press, Ltd.]
