More and more Japanese companies see interest rate hikes as an unfavorable factor, and the Bank of Japan faces policy challenges More and more Japanese companies believe that rising interest rates have had a negative impact on their business, highlighting the challenges faced by the Bank of Japan in policy normalization after years of implementing ultra-low interest rates. According to a survey conducted by Imperial Data Bank last month, about 44% of Japanese companies believe that the downside risk brought by rising interest rates is greater than the upside risk, which is nearly 7 percentage points higher than the expectation in April 2024. These companies include real estate companies that are concerned that rising mortgage interest rates will suppress housing demand, as well as those that have indicated that they may need to postpone loans. Only 2.8% of companies stated that an increase in interest rates would benefit them, while some believe that a stronger yen will lower import costs. However, influenced by the announcement of early elections by Japanese Prime Minister Hayao Takashi, the Japanese yen has further declined this month. (Xinhua Finance)