TOKYO -- The Japanese government faces mounting pressure to streamline its finances following the Bank of Japan's decision to end negative rates, with interest payments on bonds seen potentially tripling over the next decade.
Japan's nominal long-term interest rate will increase to 1.5% in fiscal 2028 from 0.6% in fiscal 2023 under a high-growth scenario, the Cabinet Office projects. This would lift annual interest payments by around 50% to 11.5 trillion yen ($76.2 billion) from 7.6 trillion yen.
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