Tokyo: Japan Post Bank has said it will raise its five-year deposit rate from the current 0.002 percent to 0.070 percent on Monday, reflecting a rise in long-term government bond yields after monetary policy tweaks by the Bank of Japan.

This is the first interest rate hike for time deposits by Japan Post Bank since June 2007, before the country’s postal privatization.

The move comes after major Japanese banks raised their time deposit rates last autumn.

Japan Post Bank will leave its interest rates on deposits with other fixed terms unchanged.

JIJI Press