Is Japan ready for a ‘world with interest’?

JAPAN is on the cusp of a brave new world – one where bank deposits yield 0.1 per cent a year.

Okay, that might not sound like a revolution. But in a country where an entire generation has grown up knowing nothing but yields near zero, and mortgage rates that seemed to get cheaper by the year, Mitsubishi UFJ Financial Group’s move to raise what it pays savers is exceptional.

It followed the shock rate hike by the Bank of Japan (BOJ), and considering that the megabank slashed its return on deposits to a mere 0.001 per cent in 2016, it’s easier to see why it matters.