Japanese economic minister Kaoru Yosano says that his country is at a “critical point” in terms of its debt, according to the FT.
The comments come less than a week after Yosano said interest rates on the country’s debt were likely to rise if Japan did not get its debt situation under control.
Wednesday he said that an interest rate spike was, “a dreadful dream,” for Japan, and that Japan’s debt position could change “overnight.”
Just last week, Societe Generale labelled Japan one of the biggest sovereign debt risks in Asia. And for some time, a great deal of market commentators have suggested Japan could turn into a hyper-inflationary marketplace.
What was once the worry of bank analysts has now made it way into the Japanese cabinet.