- ARAB NEWS
- 04 May 2024
Since 1975
Tokyo: Major Japanese banks are expected to raise their fixed housing loan rates next January after a Bank of Japan policy tweak pushed up long-term interest rates.
MUFG Bank and four others are seen announcing such moves soon.
Banks set fixed rates for the initial 10-year loan period, a popular segment, based on long-term interest rates on the bond market.
The yield on the newest 10-year Japanese government bond issue, a market benchmark, shot up from around 0.25 pct to over 0.4 pct after the BOJ raised its cap on long-term rates to 0.5 pct from 0.25 pct.
The 10-year fixed housing loan rates at major banks have been rising moderately since the beginning of the year.
The rates “will rise more clearly” after the BOJ action, a major bank official said.
JIJI Press
