Three Japanese Megabanks Raise Deposit Interest Rates Fivefold

Aug 01, 2024 | News On Japan

TOKYO - Japan's three major banks announced on Wednesday that they will increase the interest rate on ordinary deposits from the current 0.02% to 0.1%, a fivefold increase. Resona Bank is also planning to announce a similar increase soon.

MUFG Bank revealed that it will raise the "short-term prime rate," which serves as the benchmark for variable-rate home loans, starting in September.

This hike marks the first increase in 17 and a half years.

Other major banks are also considering similar hikes, which are likely to impact the interest burdens on both households and businesses.

There are also voices of anticipation from companies hoping that the Bank of Japan's rate hikes will correct the yen's depreciation.

Tottori Mitsuko, President of Japan Airlines, said, "The increase in fuel costs and the impact on outbound travel demand due to the weak yen are significant. It would be very welcome if the rate hikes lead to a stronger yen."

Source: ANN

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