Following the BOJ’s rate hike, megabanks’ ordinary deposit rates changed from 0.4% to 0.5%, and a review of the short-term prime rate, which serves as the benchmark for mortgage rates, is also under consideration.
The BOJ raised its policy rate to around 1.25%, a level not seen in about 31 years.
Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation and Mizuho Bank announced that they would change their ordinary deposit rates from 0.4% to 0.5% from 2 November. For all 3 banks, this will be the highest level in about 34 years, since August 1992.
Mitsubishi UFJ Bank and Mizuho Bank said they would change the short-term prime rate, which serves as the benchmark for variable-rate mortgages, from 2.375% to 2.625% from 2 November. Sumitomo Mitsui Banking Corporation is also considering an increase.