On the 19th, three megabanks announced in succession that they would raise deposit interest rates. The trigger for this was the lifting of the negative interest rate policy. The Bank of Japan decided to raise interest rates for the first time in 17 years. Someone who had just bought a brand new house with a 35-year loan... Read the article in this video > https://news.ntv.co.jp/category/econo... ■Purchasing a house with a 35-year loan: "Even a small change would make me feel like I was being strangled" On the night of the 19th, "news zero" visited Mr. Ito, who purchased his "dream home" in Yokohama City two years ago. Mr. Ito (29) "Is it today? Today? Already? I had no idea" He was surprised by the announcement made by the Bank of Japan on the 19th. Bank of Japan Governor Kazuo Ueda: "Large-scale monetary easing policies such as the negative interest rate policy have played their role." Ito (29): "First of all, I was confused. It's been two years since I bought a house, and just when I thought life was finally settling down, I'm filled with anxiety about whether I'll be able to manage my finances properly." The Bank of Japan has made a major policy shift that may change our financial situation in the future. The Bank of Japan has decided to raise interest rates for the first time in 17 years, since February 2007. ◇ On the night of the 19th, I spoke to investors at a bar about this decision. A member of an investment club at an advertising company: "I'm paying attention to how stocks will move as a result of this." Office worker (40s): "It was a bold move." Office worker (50s): "It was a historic day." I also spoke to people on the street. Mizuho Bank user: "I'm not happy at all even if the interest rate is 5 yen or 6 yen. I think I'll have more to look forward to if it goes up a little." A person who bought a house with a "variable interest rate" last year: "My salary hasn't increased at all, so prices are just going up, so I was surprised by this decision." A person on the street: "In the end, what and how has it become cheaper!? Has it become more expensive!?" Various voices were heard about the first interest rate hike in 17 years. The "negative interest rate" that has continued for about eight years will be lifted from the 21st. Just as we deposit money in a bank, banks deposit money with the Bank of Japan. Until now, when banks deposit money, they applied a negative interest rate if it exceeded a certain amount, meaning that the depositor was charged a "fee." By doing this, they were trying to make people think that it would be better to circulate money to individuals and companies rather than depositing it in the Bank of Japan, and to revitalize the economy. Now that the negative interest rate has been lifted, the fees have disappeared, and banks will have more room to maneuver. The head of Tokyo Star Bank smiled and nodded repeatedly as he watched the breaking news that the Bank of Japan had decided to lift its negative interest rate policy. Tokyo Star Bank President Takeshi Ito: "From the perspective of individual customers, there is a high possibility that the world where interest is paid on deposits will return." One of the benefits of an interest rate hike for us is that the "interest rate on deposits" will increase. A woman who heard the news of the interest rate hike and checked one of her savings accounts... Self-employed (40s): "I wonder how much yen I have..." "1 yen... it doesn't matter whether you have it or not, right?" 70s: "I lived when interest rates were good, so I could go on trips with the interest. 60,000 yen interest on 1 million yen. There was a time like that. That's why I can't wait for the interest rate hike." In response to this decision, the three megabanks immediately announced that they would raise interest rates on ordinary deposits and other products. Mitsubishi UFJ Bank will raise the interest rate on ordinary deposits to 0.02%, 20 times the current rate, from the 21st, and Sumitomo Mitsui Banking Corporation will also raise it to 0.02% from the 1st of next month. Mizuho Bank is also planning to raise its interest rate. So what will happen to "home loans"? Mr. Ito, who bought his own home in 2022, showed us a monthly repayment simulation. Mr. Ito and his wife took out a 35-year double loan. Instead of a "fixed" type, where the interest rate remains the same, they chose a "variable" type, which has a lower interest rate but also carries the risk of interest rates being revised. Mr. Ito: "At the time, I was told that the interest rate would almost never be higher than a fixed loan, so I chose a variable type with an eye to the future. Now that this has happened, I'm wondering which is more advantageous and whether I should restructure the loan. A house is a big purchase, so the original amount is high. Even a small change in interest rate can make you feel like you're being strangled." Mortgage analyst Takashi Shiozawa points out that with the current interest rate hike, variable types will still be more advantageous than fixed types. ■ Small and medium-sized businesses say it's "honestly tough" Concerns were raised at a meat bento shop that sells bento boxes over 1,000 yen, using Kagoshima brand beef. Niku Bento Togoshi Ginza Main Branch Area Manager: "The current situation is that (purchasing) costs are rising, and profits are getting quite tight." He says that it's already tough with the current high prices. -- Will the repayment amount for management funds increase? Niku Bento Togoshi Ginza Main Branch Area Manager: "It is expected to rise (as interest rates rise). To be honest, it's tough and difficult." In a survey of 811 small and medium-sized enterprises conducted by Jonan Shinkin Bank, 55.7% responded that they were worried about rising interest rates. (Survey conducted from the 13th to the 15th) The Bank of Japan explained that "we believe that the accommodative financial environment will continue for the time being." It also said that "a sudden rise in interest rates can be avoided." ■ Will the impact of this as a brake on the economy be small? Yumiko Udo, anchor: "Even if negative interest rates are lifted, what do you think we should do to ensure that Japan's economy continues to grow (sustainably)?" Yoichi Ochiai, Associate Professor at the University of Tsukuba (partner of "news zero"): "I think it will be fine. I want to think that it will grow a lot." "For example, when stock prices temporarily fall, ordinary people get anxious and sell their stocks. NISA and other savings accounts are based on the premise of long-term holding, so I think they are less affected by fluctuations. Therefore, even if negative interest rates are lifted, I don't think stock prices will fall suddenly." "The cycle of keeping money in a safe → saving → investing, which was the purpose of the Tsumitate NISA, is working well, so I think the impact of negative interest rates as a brake on the economy will be small." Udo, anchor: "However, stock prices fluctuate from time to time, so I would like to keep a close eye on this as well." (From "news zero" broadcast on March 19, 2024) 📌Subscribe here / @ntv_news ◇Nippon Television News Department SNS X https://x.com/news24ntv TikTok / ntv.news Facebook / ntvnews24 Instagram / ntv_news24 ◇【Latest news LIVE broadcast】NTV NEWS NNN HP https://news.ntv.co.jp #Bank of Japan #Interest rate hike #Negative interest rate policy #NTV #newszero #News