Japan's rate hike increases burden on housing, business investment: economist

China

Japan's rate hike increases burden on housing, business investment: economist

2025-12-20 16:52 Last Updated At：21:17

The latest interest rate hike by the Bank of Japan (BOJ), the country's central bank, will increase people's housing burdens and harm the investment environment for businesses, said a Japanese economist.

The BOJ on Friday raised its benchmark interest rate by 25 basis points to 0.75 percent, its highest level in three decades, after a two-day monetary policy meeting.

The move marked the first rate hike since January and also the first under the administration of Prime Minister Sanae Takaichi, who advocated an aggressive fiscal policy and monetary easing.

Hideo Kumano, chief economist of the Economic Research Department of the Dai-ichi Life Research Institute in Tokyo, said in an interview with China Media Group (CMG) that the rate hike will pose a heavier burden on those planning to buy estates.

"First, the burden will increase significantly for families applying for new home loans in the future, as the variable interest rate on mortgages will also change. For businesses, corporate bond issuance rates are rising, which is a negative factor for both housing and equipment investment," he said.

Following the BOJ's announcement of an interest rate hike, the yield on 10-year Japanese government bonds, a benchmark for long-term interest rates, briefly exceeded 2 percent in the Tokyo bond market. Kumano said the rate hike will exacerbate the burden of interest payments on Japanese government debt.

"A long-term interest rate exceeding 2 percent is highly impactful, given that Japan's debt is more than twice its GDP. If long-term interest rates rise too rapidly, government tax revenue growth will be insufficient to cover the increased interest payments, further squeezing the flexibility of Japan's fiscal operations," he said.

Due to a significant shortage of fiscal resources, the Japanese government decided to issue over 11 trillion yen (around 69.7 billion U.S. dollars) in additional government bonds on Dec 16. Kumano said that the Japanese government's reliance on government bonds could further push up long-term interest rates.

East China county sees arrivals of over 10,000 swans for wintering

As temperatures drop in the north hemisphere, large flocks of swans have migrated from the colder north to Jinxian County of Nanchang City in warmer east China's Jiangxi Province to tide over the winter.

This year, thanks to the improved environment, over 10,000 swans have arrived in the vast stretches of wetlands in the county, according to staff of the local forestry bureau.

These beautiful creatures have attracted many birdwatchers, residents, and visitors eager to capture the scene.

"I have been coming here to photograph birds for 12 consecutive years. Each year, I have different experiences in bird photography. Over recent years, I've felt that the ecological system in Jinxian has improved significantly, and the varieties of migratory birds have also increased. This change is a result of everyone's efforts to protect and love birds. Every time I see a stunning scene, my mood is different," said Fan Zheping, a birdwatcher.

Not far from the site, Nanchang City has built a natural education and science popularization base featuring specimen displays, immersive VR experiences, and 3D video presentations.

"Such an immersive experience is not only particularly novel and interesting, but also deepens our understanding of the importance of protecting migratory bird habitats and safeguarding nature," said Luo Canqi, a local pupil.