OPINION: Japan's cash-rich firms downplay rate-hike impact, stocks hit highs

Japan has experienced sustained inflation since 2022. In its April economic outlook report, the Bank of Japan projected 2.8 percent inflation in fiscal 2026. Nevertheless, the policy rate remains at 1 percent, even after an increase in June. Among major economies, it is unusual for the rate to continue to fall so far below inflation. If the BOJ delays rate hikes due to excessive concern for the economy, it may respond too late, which could hit households through faster increases in living costs.Meanwhile, long-term yields on Japanese government bonds have already risen in the market, where …READ FULL ARTICLE