with both the BOJ’s tightening

The weak yen increases the prices of imported energy and food. This has raised average household costs in 2024 by 90,000 yen (US$590). To combat this, Japanese Prime Minister Shigeru Ishiba implemented stimulus measures to subsidise utility bills and provide cash for poorer households. But one problem with both the BOJ’s tightening and Ishiba’s stimulus package is that they increase budget deficits. By raising interest rates, the BOJ raises the cost of servicing Japan’s public debt. At 1.2 per cent, yields on 10-year Japanese government bonds are at their highest level in 14 years. Debt service costs in 2025 are already forecasted to be above 4 per cent of GDP. Ishiba’s package, along with increased spending on military and social security categories, will turn the forecasted primary budget — the budget excluding interest payments — from a surplus into a deficit of 0.7 per cent of GDP in 2025. With a public debt of 250 per cent of GDP, สล็อตเว็บตรง