Weak yen a factor in Tokyo’s stance on raising borrowing costs

20251205N BOJ Ueda KYODO

A Dec. 1 speech by Bank of Japan Gov. Kazuo Ueda has led more market watchers to expect an interest rate hike in December. © Kyodo

JUNTARO ARAI

December 6, 2025 09:07 JST

TOKYO — With the Bank of Japan set to debate raising its policy rate to 0.75% later this month, Prime Minister Sanae Takaichi’s government is showing little opposition to an increase in borrowing costs.