TOKYO (Reuters) -Japan’s largest lender Mitsubishi UFJ Bank will raise its short term prime lending rate for the first time in 17 years after the Bank of Japan hiked short term interest rates to 0.25%, it said on Wednesday.
The rate will rise to 1.625% from 1.475% from Sept. 2, the banking arm of Mitsubishi UFJ Financial Group said in a statement.
The prime lending rate is the underlying interest rate applied to housing loans, corporate borrowing and other interest products.
It was last raised in March 2007, reaching 1.875% at the time before being periodically lowered in the intervening years.
The bank also raised the ordinary interest rate on yen deposits to 0.1% from 0.02%.
(Reporting by Anton Bridge, Editing by Louise Heavens)
