Mizuho's long-term interest rate hits 15-year high

TOKYO, Nov. 7 (Jiji Press) — Mizuho Bank said on Thursday it will raise its long-term benchmark interest rate by 0.1 percentage point to 1.85 percent, the highest in 15 years, effective Friday.

The bank's long-term interest rate will rise for the third month in a row, reflecting a rise in Japanese government bond yields.

SBI Shinsei Bank, Aozora Bank and Shoko Chukin Bank said on the same day that they would also raise their respective long-term policy rates to 1.85 percent on Friday.

Long-term key interest rates are used when granting one-year and longer-term loans to large companies. Instead, many new loans are currently based on short-term base rates used for variable rate home loans.

Many banks have recently raised their short-term interest rates in response to a rate hike by the Bank of Japan.

[Copyright The Jiji Press, Ltd.]