TOKYO, Aug 17 Reuters About 40 of Japanese firms expect the central bank39;s recent policy adjustment to have an impact on their fundraising, a Reuters survey showed, highlighting Japan Inc39;s sensitivity to any changes in policy after years of massive easing.

Signs the Bank of Japan may be gearing up to exit its ultraloose monetary regime have raised the spectre of higher borrowing costs in the world39;s thirdlargest economy, marking a potentially vast shift after decades of rockbottom rates.

Twothirds of firms said that they would see an impact on their fundraising if longterm interest rates touched 1, the level the central bank now allows 10year bond yields to hit.

It will mean higher interest rates on our debt and lead to a deterioration in our cash flow, one manager at an electronics firm said about the BOJ39;s policy tweak.

The Bank of Japan last month took steps to allow longterm interest rates to move more freely in line with increasing inflation and growth even as it stuck to its yield curve control YCC targets that it uses to guide rates.

We expect capital investments in new businesses to be impacted, a manager at a paper and pulp company wrote.

The monthly Reuters Corporate Survey of 503 large and mediumsized nonfinancial Japanese firms, in which 256 responded, showed that 7 of firms expect an impact this financial year that ends in March. Another 34 see an impact on fundraising from the next financial year.

The survey was conducted for Reuters by…