[More and more Japanese companies view rate hikes as a negative factor, Bank of Japan faces policy challenges] Jinshi Data, January 22 – An increasing number of Japanese companies believe that rising interest rates have had a negative impact on their businesses, highlighting the challenges faced by the Bank of Japan in normalizing its policies after years of ultra-low interest rates. According to a December survey by Teikoku Databank, approximately 44% of Japanese companies think the downside risks of rising interest rates outweigh the upside risks, a figure nearly 7 percentage points higher than the forecast for April 2024. These companies include real estate firms concerned that higher mortgage rates will suppress housing demand, as well as businesses indicating they may need to delay loans. Only 2.8% of companies said they would benefit from rising interest rates, with some believing that a stronger yen would reduce import costs. However, the yen has further weakened this month following Japanese Prime Minister Sanae Takaichi's announcement of an early general election.