Following the BOJ's rate hike, ordinary deposit rates at MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, and Mizuho Bank, Ltd. will rise from an annual 0.4% to 0.5%, reaching their highest level in approximately 34 years. The new rates will apply from 2 November.
Following the BOJ's monetary policy meeting, the 3 megabanks, MUFG Bank, Ltd., Sumitomo Mitsui Banking Corporation, and Mizuho Bank, Ltd., announced that they would raise ordinary deposit rates from the current annual 0.4% to 0.5%. The new rates will apply from 2 November.
The move reflects the BOJ's decision to raise interest rates, and ordinary deposit rates are expected to reach their highest level since August 1992. At the same time, the rise in interest rates is drawing attention to trends in investment and deposits.
MUFG Bank and Mizuho Bank also announced increases in their short-term prime rates, which serve as benchmark rates for mortgage loans. The rates will be raised by 0.25 percentage points to 2.625% from 2 November, reaching a level seen for the first time in approximately 31 years.
While higher ordinary deposit rates will increase the interest earned by depositors, rising mortgage rates could increase households' repayment burden.