Japan raises interest rates to 31-year high to curb impact of rising prices

Japan’s central bank has raised interest rates to their highest level in over three decades, marking a significant shift in monetary policy as global inflation pressures intensify. The move follows similar actions by the US Federal Reserve and European Central Bank, signaling a coordinated effort to tighten financial conditions amid rising costs fueled by geopolitical tensions. Economists suggest the decision reflects growing concerns over sustained inflation, particularly in light of ongoing conflicts disrupting global supply chains. The adjustment could have broad implications for borrowing, investment, and currency stability in the region.

Increase from 1% to 1.25% follows US Federal Reserve and European Central Bank tightening monetary policyBusiness live – latest updatesJapan’s central bank has increased interest rates to a fresh 31-year high as it attempts to combat high global inflation linked to the war in Iran.The Bank of Japan voted to raise its target interest rate from 1% to 1.25%, the highest level since 1995. Continue reading...