MUFG Hikes Deposit Rates to 34-Year High, Following BoJ Rate Increase

MUFG and other major Japanese banks will raise ordinary deposit rates to 0.5%.

This marks an increase from the previous 0.4% rate.

The adjustment follows the Bank of Japan's decision to increase its policy rate to 1.25%.

The new rates take effect on November 2nd.

This level represents the highest interest rate in approximately 34 years.

MUFG Bank also increased its short-term prime rate to 2.625%.

This reflects a 0.25 percentage point increase in the benchmark.

The rate serves as the primary indicator for variable-rate mortgages.

Borrowers are likely to face higher repayment costs as a result.

The move signals a significant shift in Japan's long-standing low-interest-rate environment.