BOJ Hikes Interest Rate to 31-Year High Amid Global Economic Pressures

Japan's central bank, the Bank of Japan (BOJ), has raised its main interest rate to a fresh 31-year high of 1.25% in an effort to curb rising prices and economic pressures.

The decision comes as major central banks around the world are hiking rates due to increasing inflation caused by higher energy prices resulting from the Iran war.

Since 2024, the BOJ has been steadily raising its policy rate, which is now six times higher than its previous level of minus 0.1% in 2024.

This move aims to help Japan reach a similar interest rate level as other major economies and address several economic challenges it faces, including a weak yen, rising prices, and a shrinking workforce.