If you’re looking for another reason why the Bank of Japan won’t be hiking rates anytime soon, the number $338 trillion sure fits the bill.

That’s the debt level milestone the global economy reached in the second half of 2025. And it’s after a $21 trillion surge in the first six months of the year. Japan, not surprisingly, is one of the nations that the Institute of International Finance flags as places where “markets fear fiscal strains could deepen.”

Already, Japan has the largest debt load among developed nations, roughly 260% of gross domestic product. And, already, 20-year Japanese government bond (JGB) yields are trading near the highest since 1999.