The Bank of Japan’s decision on Friday to raise its policy interest rate further is expected to affect households and businesses in both positive and negative ways.
Following the latest BOJ decision, MUFG Bank and Mizuho Bank, two of the country’s three megabanks, announced that they will increase their short-term prime lending rates to 2.125% from 1.875%.
The short-term prime rates are used to adjust floating mortgage rates every six months. About 80% of housing loans in Japan are believed to be the floating-rate type.