Mitsubishi Bank cuts rate

Mitsubishi Bank cuts rate

TOKYO (AFP): Japan's Mitsubishi Bank Ltd. said yesterday it would lower its short-term prime lending rate to 2.75 percent from three percent, effective April 12.

The cut followed the announcement by the Bank of Japan that the central bank was easing short-term interest rates to boost a flagging economic recovery.

Bank sources said other commercial banks were likely to follow suit shortly.

Mitsubishi Bank announced earlier this week it would merge with Bank of Tokyo as early as October to create the world largest bank.