TOKYO: Major Japanese lenders see increased demand for funds among corporate borrowers compared with three months ago, a survey showed on Thursday, indicating the central bank's recent interest rate hikes have yet to tighten financial conditions.
Financial conditions are becoming increasingly important in predicting the timing of the Bank of Japan's next rate hike. The bank has said it will scrutinise how past increases affect corporate funding to assess how close its rate is from a level it deems neutral to the economy.
In a survey, that the BOJ conducted over September 9 through October 13, a diffusion index measuring the ratio of major banks that saw corporate fund demand rise versus those seeing demand shrink stood at +3, compared with -1 in a survey three months earlier.
