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2026-07-16 07:06:11
[Survey: Nearly Half of Japanese Companies Suffer Profit Losses Due to Dual Pressure from Interest Rate Hikes and Yen Depreciation] 1. A recent corporate survey shows that nearly half of Japanese companies have suffered losses due to the Bank of Japan's interest rate hikes. About one-third of the surveyed companies indicated that the rate hikes so far have damaged their capital investment plans, reflecting the suppressive effect of rising borrowing costs on business operations. 2. Meanwhile, more than half of Japanese companies believe that the weakening yen has negatively impacted profits, indicating that the cost-push effect of currency depreciation has outweighed its positive effect on boosting exports. The yen broke through the 162 level against the US dollar in late June 2026 and has been hovering near 40-year lows ever since.
