The Japanese flag flies outside the Bank of Japan (BoJ) headquarters in central Tokyo on March 19, 2024.
(RICHARD A. BROOKS/AFP via Getty Images)
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How Will Rising Interest Rates Impact Japan's Debt Outlook?

May 20, 2026 | 18:53 GMT

Monetary tightening will increase government interest payments and fiscal deficits, but the impact on debt dynamics and defense spending will remain manageable, provided the central bank avoids large-scale government bond sales.

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