Rising Rates in Japan: Higher Costs for Government, Mixed Impact on Economy

Higher interest rates mean higher debt servicing costs for the Japanese government and potential losses on bond holdings by the Bank of Japan.

Banks, especially regional banks, stand to benefit from wider interest margins over time.

Higher mortgage rates will squeeze homeowners and cool the property market.

The demise of "zombie firms" may boost overall economic growth long-term.

A stronger yen would hurt exporters but benefit importers and consumers through cheaper imports.