60 Pct of Japan Firms Want BOJ to Pause Rate Hike: Poll

Tokyo, Feb. 13 (Jiji Press)–Nearly 60 pct 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. 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 pct of companies, the largest proportion, said that the central bank should hold rates steady, while 23.6 pct said that lowering rates would be advisable and only 16.6 pct suggested raising them. The survey found that 52 pct said that borrowing rates had already risen since the BOJ raised its policy interest rate to 0.75 pct in December. Asked about the impact of the central bank’s latest interest rate hike, 57.1 pct cited lower profitability, 35.4 pct mentioned worsening finances, and 24.8 pct noted a reduction or cancellation of capital investments. The survey was conducted online between Jan. 30 and Feb. 6, with valid responses coming from 5,170 companies. END [Copyright The Jiji Press, Ltd.]