STORY CONTINUES BELOW THESE SALTWIRE VIDEOSTOKYO - Japan's Ministry of Finance will raise its assumed long-term interest rate to 1.5% for the fiscal 2024/25 year from a record-low 1.1% this fiscal year, Kyodo news agency reported on Monday.
While the assumed rate tends to be estimated conservatively and is subject to change depending on actual long-term rate moves, any increase adds to strain on the country's budget which is set to exceed a record 114 trillion yen with planned rises in defence and social security spending.The higher assumed rate would be used to calculate debt-servicing costs when compiling the fiscal 2024/25 budget draft in late December, after sticking to a rate of 1.1% since fiscal 2017.
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