Major banks have increased the interest rates they charge on deposits five-fold, following the Bank of Japan’s interest rate hike.

Mitsubishi UFJ Bank recently announced that it will raise the interest rate on ordinary deposits from 0.02% to 0.1% from September 2nd.

Sumitomo Mitsui Banking Corporation also announced that it would raise interest rates on ordinary deposits from 0.02% to 0.1% starting August 6th.

This comes in response to the Bank of Japan’s decision to raise interest rates further, and other financial institutions are expected to follow suit.

Mitsubishi UFJ Bank also announced that it will raise its short-term prime rate, the benchmark interest rate for home loans and corporate loans, from September. This will be the first increase in 17 years.

Banks are considering raising interest rates on variable rate home loans, and those taking out new loans are expected to see their interest rates rise as early as September, while those who already have loans will see their interest rates rise from around January next year.