Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corp., and Mizuho Bank announced on the 18th that they will raise their ordinary deposit interest rates from the current 0.4% to 0.5% per year. The move reflects the Bank of Japan's decision to raise its policy rate at that day's monetary policy meeting, and all three will apply the new rate from November 2. For all three banks, this marks the highest level in about 34 years, since August 1992. Mitsubishi UFJ and Mizuho also announced increases in their short-term prime rates, which serve as the benchmark for variable-rate mortgage loans, raising them by 0.25 percentage point to 2.625% from November 2. That is the highest level in about 31 years. While higher ordinary deposit rates mean depositors earn more interest, rising mortgage rates could increase the repayment burden on borrowing households.
Mitsubishi UFJ Financial Group, Inc.
Sumitomo Mitsui Financial Group, Inc.
Mizuho Financial Group, Inc.