More Japanese banks to raise short-term prime rates

FILE PHOTO: A Japanese flag flutters atop the Bank of Japan building in Tokyo May 23, 2012. Picture taken May 23, 2012. REUTERS/Toru Hanai

Tokyo — Three major Japanese banks said Monday that they will raise their short-term prime lending rates by 0.25 percentage point in March following Friday’s decision by the Bank of Japan to increase interest rates.

Mizuho Bank and Sumitomo Mitsui Trust Bank will raise their short-term prime to 1.875 percent and Resona Bank will hike its rate to 2.125 percent.

READ: Bank of Japan hikes interest rate

MUFG Bank and Sumitomo Mitsui Banking Corp. have already announced plans to raise their short-term prime by 0.25 percentage point in March.

The short-term prime is used to calculate interest rates on floating-rate housing loans, which are used by some 70 percent of housing loan borrowers.