![Pinterest](https://pinterest.com/pin/create/button/?url=https://bollspel.com/japans-government-plans-to-increase-long-term-rate-estimate-in-budget-for-2024-25-sources/&media=https://bollspel.com/wp-content/uploads/2023/12/10625-japans-government-plans-to-increase-long-term-rate-estimate-in-budget-for-2024-25-sources.jpg&description="Learn about Japan's government plans to raise long-term rate estimate in the budget for 2024/25. Get the latest insights from trusted sources on the potential impact of this decision."){kind=link}
Japan Government to Increase Long-Term Rate Estimate in FY2024/25 Budget
By Takaya Yamaguchi
TOKYO (Reuters) – According to sources, Japan’s government will increase its long-term interest rate estimate used for compiling the state budget to 1.9% for the next fiscal year, up from the current year’s 1.1%.
The higher estimate is a response to the rising government bond yields, reflecting expectations of an exit from ultra-loose monetary policy in the near-term. This will result in an increase in the government’s debt-financing cost, as per sources who declined to be identified.
Finance ministry officials were not immediately available for comment.