Asian Economy: Overview, Growth and Development- Japan watching impact of rate rises by the west on its economy.

Byline: S. Kamal Hayder Kazmi

Japan will watch how rising interest rates in Western nations could affect its economy, the finance minister said on Tuesday, as higher bond yields would boost borrowing costs for the industrial world's heaviest public debt burden.

Shunichi Suzuki made the remark as the parliament's powerful lower house is set to approve the fiscal 2022/23 budget with a record $940 billion in spending on Tuesday, setting the stage for the budget's full passage through the legislature in March.

"As interest rates rise, interest payments will rise as well, straining Japan's budget," Suzuki told reporters after a cabinet meeting.

If trust in our fiscal management is called into question, we cannot rule out a...