These Will Be the Winners and Losers When Bank of Japan Ditches Negative Rates
- Banks to profit while government, mortgage holders pay more
- Asset flows may switch, possible yen impact may hit exporters
Outside the Bank of Japan (BOJ) headquarters in Tokyo.
Photographer: Kentaro Takahashi/BloombergThis article is for subscribers only.
The Bank of Japan’s steady march toward raising interest rates for the first time since 2007 begs the question of who will win and who will lose after years of massive stimulus and ultra-low borrowing costs.
Higher interest rates will have a direct impact on the government, companies, banks and households, while a potential strengthening of the yen would trigger ripple effects on businesses, consumers and tourists. Flows of money and securities may also change if higher returns are available in Japan, adding to the wide-ranging fallout.