More Japanese companies are now reporting negative impacts from rising interest rates on their bottom line. This trend highlights a growing challenge for the Bank of Japan, which is gradually shifting away from its long-standing ultra-loose monetary policy stance.

After years of maintaining near-zero borrowing costs, the BOJ's policy normalization is creating real friction across Japan's corporate landscape. The widening share of businesses struggling with higher rates signals the delicate balancing act central banks face when unwinding stimulus—supporting recovery while managing inflation expectations.

For those tracking global economic shifts, Japan's transition offers a cautionary tale: what appears as a measured policy adjustment can still ripple through entire business sectors, affecting capital costs and profit margins. This matters beyond Japan's borders, as it demonstrates how synchronized central bank tightening cycles influence corporate stress levels worldwide.