Japan's largest banks to raise housing loan rates after BOJ's policy tweak
Business
Japan's largest banks to raise housing loan rates after BOJ's policy tweak
TOKYO (Reuters) - Japan s three biggest banks said on Friday they would raise interest rates for housing loans for next month, reflecting the Bank of Japan s tweak in its ultra-loose policy.
Sumitomo Mitsui Banking Corp, the main banking unit of Sumitomo Mitsui Financial Group (8316.T), will raise 10-year fixed-rate loans by 0.26 percentage point to 3.79%, while that rate for Mizuho Bank, the main banking unit of Mizuho Financial Group (8411.T), will be 3.50%, up by 0.3 percentage point.
Mitsubishi UFJ Bank, the main banking unit of Mitsubishi UFJ Financial Group (8306.T), will raise the rate by 0.18 percentage point to 3.7%.
Each bank has special loan programs for selected customers so their rates will be lower, with Sumitomo Mitsui charging 1.14%, Mizuho 1.60% and Mitsubishi UFJ 1.05%.
Japan s central bank surprised the market last week by raising the cap on 10-year bond yield to 0.5% from 0.25%.
