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.