FILE PHOTO: Japan's Prime Minister Shigeru Ishiba delivers his policy speech at the lower house of the parliament in Tokyo, Japan, November 29, 2024. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -Japan must be aware that rising interest rates would push up the government's debt-financing costs and affect its spending plans, Prime Minister Shigeru Ishiba said on Monday.

"Japan is shifting to a phase where interest rates rise as a trend," Ishiba told parliament.

"Japan's debt-to-gross domestic product ratio is high. When interest rates rise, the cost of funding government debt increases. That could weigh on spending," he said, calling on the need to ensure the government maintains public and market trust in its finances.

(Reporting by Leika Kihara; Editing by Kim Coghill)