Key Facts
• Bank of Japan maintained policy interest rate at 0.5% for the 4th consecutive meeting.
• Ordinary deposit rates for major banks remained unchanged at 0.2% as of July 31, 2025.
• Internet banks showed no rate changes since June 2025.
• Ordinary deposit rate leaders: 1st – Minna no Ginko (0.30%), 2nd – au Jibun Bank (0.21%).
• 5-year fixed deposit rate leaders: 1st – Daiwa Next Bank (0.70%), 2nd – UI Bank (0.55%).
• 10-year fixed deposit rate leaders: 1st – Sony Bank (0.60%), 2nd – major banks and others (0.50%).
• Fixed deposit rates for 5 years and 10 years have remained stable for over six months.
• BOJ revised 2025 core CPI forecast from 2.2% to 2.7%, hinting at potential future rate hikes.
Summary
In August 2025, the Bank of Japan maintained its policy interest rate at 0.5% for the fourth consecutive meeting, resulting in no significant changes in deposit interest rates across major banks. Ordinary deposit rates remained at 0.2%, with Minna no Ginko leading at 0.30%. Daiwa Next Bank continued to dominate 5-year fixed deposits with a 0.70% rate, while Sony Bank led 10-year fixed deposits at 0.60%. Internet banks, known for frequent rate adjustments, also showed no changes since June 2025. Meanwhile, the BOJ raised its 2025 core CPI forecast to 2.7%, signaling potential future rate hikes. The economic landscape remains cautious, with both Japan and the U.S. central banks holding steady on interest rates.
