Mizuho to Raise Long-Term Prime Rate to 11-Year High

Economy

Tokyo, Jan. 10 (Jiji Press)--Mizuho Bank said Tuesday that it will raise its long-term prime lending rate, the benchmark interest rate on loans to big companies, by 0.15 percentage point from the previous month to 1.40 pct for January, the highest level since February 2012.

The higher rate will take effect on Wednesday, reflecting a climb in Japanese government bond yields following the Bank of Japan's recent revision to its monetary easing policy.

At its policy-setting meeting last month, the BOJ decided to allow 10-year Japanese government bond yields to move between plus and minus 0.5 pct, against the previous range of plus and minus 0.25 pct.

The long-term prime rate is calculated as the interest rate on over-one-year loans for blue-chip companies.

Actual lending rates, meanwhile, are decided based on each company's financial conditions and business risks.

[Copyright The Jiji Press, Ltd.]

Jiji Press