MARKETS & FX
Major Banks to Raise Ordinary Deposit Rates to 0.4% in August
# ordinary deposit# deposit rate# major banks
Key Points
- After the BOJ's hike, major banks will raise ordinary deposit rates to 0.4% from August.
- It is the second increase since February.
- A direct positive for savers from the rate hike.
Analysis
Following the BOJ's hike, major banks moved quickly to raise ordinary deposit rates to 0.4% from August, the second increase since February. While modest in absolute terms, it signals that parking cash in a bank earns interest again after decades near zero. The flip side: higher deposit rates usually come with higher borrowing rates, sweet for savers and tougher for borrowers, a new reality households must adjust to.