Japan’s 3 Megabanks to Hike Ordinary Deposit Rates

Tokyo, June 17 (Jiji Press)–Japan’s three megabanks have said they will raise their annual interest rates on ordinary deposits to 0.4 pct from the current 0.3 pct, effective Aug. 3, following the Bank of Japan’s recent decision to raise interest rates. MUFG Bank, Sumitomo Mitsui Banking Corp. and Mizuho Bank announced the rate hikes Tuesday. The interest rates will rise to the highest levels since August 1992 for MUFG Bank and Sumitomo Mitsui Banking. The three megabanks will also consider raising rates on time deposits. Also on Tuesday, MUFG Bank and Mizuho Bank said they would raise their short-term prime lending rates, which influence floating housing loan rates, by 0.25 percentage point to 2.375 pct, also effective Aug. 3. For MUFG Bank, the figure will be the highest level in about 31 years. Sumitomo Mitsui Trust Bank will raise its ordinary deposit interest rate to 0.4 pct per year. While higher interest rates can benefit savers, rising mortgage rates could increase repayment burdens for households with loans. END [Copyright The Jiji Press, Ltd.]