© Reuters. FILE PHOTO: A man walks past a branch of Sumitomo Mitsui Banking Corp (SMBC) Trust Bank in Tokyo, Japan September 5, 2017. REUTERS / Kim Kyung-Hoon
TOKYO (Reuters) – Japan’s three biggest banks on Friday said they would raise interest rates on home loans next month, reflecting the Bank of Japan’s adjustment in policy to extremes. easing.
Sumitomo Mitsui (NYSE:) Banking Corp, the main banking unit of Sumitomo Mitsui Financial Corporation will increase 10-year fixed-rate loans by 0.26 percentage points to 3.79%, while that rate for Mizuho Bank, the main banking unit of Mizuho Financial Group, would be 3.50%, an increase of 0.3 percentage points.
Mitsubishi UFJ Bank (NYSE: NYSE), the main banking unit of Mitsubishi UFJ Financial Group, will raise interest rates by 0.18 percentage points to 3.7%.
Each bank has special loan programs for select customers so their interest rates will be lower, with Sumitomo Mitsui charging 1.14%, Mizuho 1.60% and Mitsubishi UFJ 1.05%.
The Bank of Japan surprised markets last week by raising the 10-year bond yield ceiling to 0.5% from 0.25%.