Japanese banks’ lending rates rise for 7th straight month

TOKYO — The average interest rate on outstanding loans by Japanese banks rose for a seventh month in July to 0.83%, data from the Bank of Japan showed on Thursday, which is expected to weigh on mortgages and fixed-rate corporate loans in coming months. .

Lead banks usually base their lending rates on a reference rate such as the Tokyo Interbank Offered Rate and a spread. TIBOR has been rising since the BOJ ended its negative interest rate policy in March, raising interest rates on floating-rate loans.

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