Japan, banks increase deposit rates after Central Bank intervention

The first in 17 years made by the BOJ with a view to reaching the 2% inflation target

TOKYO – Following the historic intervention to increase interest rates, the first in 17 years made by the Bank of Japan (BOJ) with a view to reaching the inflation target of 2%, the vast majority of major banks and regional banks have also begun to increase deposit rates, with an estimated effect on the economy that could have major repercussions. Furthermore, many banks have opted for an increase in variable interest rates on real estate mortgages after the central bank, in the last Policy Board meeting on March 18, decided to reverse the policy of negative rates. “The tendency to collect deposits as resources for commercial operations will further increase”, observed in this regard Masahiro Kihara, president of the megabank Mizuho Financial Group, one of the three main Japanese banking groups.