EconomyJapan’s Long-Term Rates Rise for Reasons Beyond BOJ Delay or Fiscal Fears; ‘Bone-Tai Shock’ Overstated

Japan’s long-term interest rates surged after Sanae Takaichi’s administration proposed a public-private investment plan worth more than 370 trillion yen. The article questions whether the phenomenon dubbed the “Bone-Tai shock” was really driven by delayed Bank of Japan policy or concerns about worsening public finances. It argues that rising rates can be consistent with higher stock prices. The scale and interpretation of the so-called shock may therefore be exaggerated, while its implications for Japan’s economy remain important.

Japan economylong-term ratesSanae TakaichiBank of Japan

TToyo Keizai★★★☆☆2026-08-04 22:00Original