Many large and regional banks in Japan raised their interest rates on ordinary deposits in March or April for the first time in about 17 years, following the Bank of Japan's lifting of its negative interest rate policy.
Some banks, mainly online banks, also increased floating interest rates on their housing loan products after the central bank at its March 18 to 19 Policy Board meeting decided to scrap the negative rate policy and guide the unsecured overnight call rate, which is the benchmark short-term interbank lending rate in Japan, to around 0.0% to 0.1% in its first rate hike in 17 years.
Under the negative interest rate regime, the BOJ had set the rate at minus 0.1% on part of commercial financial institutions' current account deposits at the central bank.