Japanese Banks to Raise Fixed Housing Loan Rates in Jan.

Economy

Tokyo, Dec. 28 (Jiji Press)--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.

[Copyright The Jiji Press, Ltd.]

Jiji Press