Japan Braces for Higher Rates After Decades of Low-Cost Money

Japanese companies and consumers are preparing for higher interest rates after decades of low borrowing costs due to deflation
Small businesses worry rate hikes could squeeze already thin profit margins and constrain investment
Firms adapted to deflation by hoarding cash and cutting costs, making it hard to change mindsets
Some hope higher rates will boost the weak yen and provide relief from rising import costs
Consumers like a young homebuyer feel optimistic wages may also rise with rates, offsetting higher loan costs