Japan Panel Urges BOJ Caution Over Firm Funding Strains
Private-sector members of Japan's key economic advisory panel have called for the central bank to monitor potential funding risks for smaller firms as Middle East tensions persist. While no immediate strains are visible, rising energy costs and supply disruptions could increase debt burdens.
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Private-sector members of Japan's economic advisory panel urged the Bank of Japan to be cautious about rate hikes. The request follows a 2.5 trillion yen ($16 billion) surge in corporate credit lines in March, the largest monthly jump since May 2020. Higher borrowing costs threaten small firms already struggling with energy prices driven by Middle East tensions.
