Hyakujushi Bank and Kagawa Bank will raise ordinary deposit rates to 0.5% and short-term prime rates by 0.25% at each bank. The changes will take effect from 2 November and are said to reflect interest rate trends.
Hyakujushi Bank and Kagawa Bank announced that they will raise ordinary deposit rates to 0.5%. The changes will take effect from 2 November, reflecting market interest rate trends following the Bank of Japan’s policy rate hike.
The increase in ordinary deposit rates is 0.5 percentage points, not 0.4 percentage points, with both banks applying the new rates from 2 November. The banks also announced increases in their short-term prime rates, with Hyakujushi Bank raising its rate from 2.875% to 3.125% and Kagawa Bank raising its rate from 3.700% to 3.950%.
The short-term prime rate increase is 0.25 percentage points, with both banks raising their rates by the same 0.25%. The rate revisions are expected to affect interbank lending benchmarks.
Against the backdrop of the Bank of Japan’s policy rate trends, movements in deposit and lending rates across the banking sector are attracting increasing attention.