Japan must explain how it will correct its public finances to avert the risk that investors would shun its bonds and push up borrowing costs, the credit rating agency Fitch has warned.
Japan was benefiting from low borrowing rates to funds its public finances because people in Japan were heavy buyers of debt bonds, Fitch said on Thursday, warning that this might not last.
Commenting on a report by the International Monetary Fund stating that the state of public finances in Japan left the country "exposed to an abrupt change in market sentiment that would increase government bond yields", Fitch said that Japan had to set out a "credible" strategy. (ninemsn.com.au)
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