Japanese long-term interest rates have climbed up to a striking 2.1%, a level unseen in 27 years. The increase, a result of growing confidence in the nation's economy, signals more expensive borrowing costs for the government and corporations yet points for potentially higher returns for savers and investors.

Interest rates in Japan have historically been kept low by the Bank of Japan in an attempt to spur economic growth. This unexpected escalation has triggered anxiety among some sectors who are concerned about increased borrowing costs, but has also sparked optimism among savers and investors who stand to gain from higher interest rate returns. Japan's monetary policies often get significant attention and this incident is likely to fuel discussions on economic growth and financial stability.

Unlike in the EU and US where interest rates have slowly risen in recent years as part of recovery efforts post-recession, Japan has maintained near-zero interest rates for some time to stimulate its economy. As such, this sudden surge in rates is a standout event for Japan.