BOJ Hikes Interest Rates to 31-Year High Amid Global Inflation Concerns

The Bank of Japan (BOJ) raised interest rates to a 31-year high and signaled its readiness to keep pushing up borrowing costs. This decision came after Japan's core consumer inflation remained steady near the central bank's 2% target in August, data showed.

The core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, rose 1.7% in August from a year earlier, compared to a median market forecast for a 1.8% gain.

This development follows rate hikes by the European and US central banks, highlighting their focus on global inflation risks caused by rising energy costs, expansionary fiscal policies, and surging demand for AI investment.