TOKYO : Any future interest rate hike by the Bank of Japan will likely be gradual and have a limited near-term impact on the country's debt financing, an official at global ratings agency Moody's Investors Service said on Friday.
"What's important is the ability of the government to fund itself at very favorable interest rates. We don't see this as necessarily having changed," he said."The government still has very comfortable funding situation." As rising inflation puts upward pressure on bond yields, markets are rife with speculation the BOJ will phase out yield curve control when dovish Governor Haruhiko Kuroda's term ends in April.
De Guzman said he welcomed the government's commitment to achieving a primary budget surplus - excluding new bond sales and debt-servicing costs - in the fiscal year to March 2026.
hike like never hike?