Bank of Japan Hikes Interest Rate to 31-Year High Amid Inflation Fears

Japan's central bank, the Bank of Japan, has raised its benchmark interest rate to 1.25% from 1.0%, a level not seen in over three decades.

The move aims to normalize monetary policy after years of keeping interest rates low to combat deflation and stimulate borrowing and spending.

The decision comes as inflationary pressures rise due to the ongoing war in Iran, which has driven up oil prices and affected Japan's resource-poor economy.

Analysts expect the Bank of Japan to raise interest rates again later this year or early next year, with some even predicting a further increase.