Japan's MoF to raise long-term interest rate to 1.5% in FY 2024/25 – Kyodo

Market news

21 August 2023

Japan's MoF to raise long-term interest rate to 1.5% in FY 2024/25 – Kyodo

Kyodo news agency reported on Monday that the Japanese Ministry of Finance (MoF) is set to raise the assumed long-term interest rate to 1.5% in the fiscal year (FY) 2024/25 from a record-low 1.1% in FY2023/24.

“The upward revision to the rate the ministry uses to calculate Japan's debt servicing costs is made based on rising market yields following the Bank of Japan's (BoJ) tweaks to its massive monetary easing policy,” Kyodo said in its report.

Market reaction

The above report fails to move the needle around the Japanese Yen, with the USD/JPY pair holding steady at 145.35.

EUR/GBP can stay offered in a 0.8500-0.8550 range – ING

EUR/GBP holds positive ground above the 0.8540 area following the German PPI data

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