Infrastructure minister Chikage Ogi said Friday she may lower the floor of the basic lending rate offered by Housing Loan Corp. in line with the downward trend in bank lending rates.

The Land, Infrastructure and Transport Ministry announced Thursday it will cut the lending rate from the current 2.1 percent to 2 percent, matching the record low posted in 1998.

Two percent is the bottom limit that has been set by the Cabinet, which is seeking to revive housing demand.

The revised interest rate takes effect Monday.

Ogi said the government needs to examine the effects of lowering the floor rate before making a decision.

Further lowering the lower limit would lead to less interest revenue for the government and could prompt accusations that the public sector is weighing heavily on the private sector.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.