Following the Bank of Japan’s decision to raise interest rates, Mitsubishi UFJ Bank announced that it would raise the interest rate on ordinary deposits from the current 0.02% to 0.10% per year from September 2nd.

The short-term prime rate, which serves as the benchmark for variable interest rates on mortgages, will also be raised from 1.475% to 1.625%.

This is the first increase in the short-term prime rate in 17 years since March 2007.