The Bank of Japan's interest rate hike Friday will likely increase interest income by about 420 billion yen, and the wealthy and elderly will benefit the most, according to a private think tank.
Hideo Kumano, chief economist at Dai-ichi Life Research Institute, estimates combined Japanese households' interest income will total 556.7 billion yen per year with the July rate hike on the premise that ordinary deposit rates will be raised to 0.1 percent from 0.001 percent and time-deposit rates will be pulled up by an average 0.08 percentage point.
On the other hand, loan repayments by households probably will increase by 134.6 billion yen, Kumano said.