Japan govt to raise long-term rate estimate in FY2024/25 budget -sources

By Takaya Yamaguchi

TOKYO (Reuters) -Japan’s government will raise its long-term interest rate estimate, used to compile the state budget, to 1.9% for the next fiscal year from the current year’s 1.1%, two people with knowledge of the matter told Reuters.

The higher estimate reflects rising government bond yields on expectations of a near-term exit from ultra-loose monetary policy, and pushes up the government’s debt-financing cost, said the people, who declined to be identified as they were not authorised to speak with media.

Finance ministry officials were not available immediately for comment.

(Reporting by Takaya Yamaguchi; Writing by Leika Kihara; Editing by Leslie Adler and Christopher Cushing)