BOJ Raises Benchmark Interest Rate to Highest Level in 31 Years

The Bank of Japan has raised its benchmark interest rate to its highest level in 31 years as it seeks to contain inflationary pressures.

The central bank increased its policy rate from 1% to 1.25%, marking the sixth increase over the past two and a half years.

This decision comes amid concerns about higher energy costs linked to the conflict involving Iran, which have added to global inflationary pressures.

Japan is particularly exposed to fluctuations in Middle Eastern energy supplies due to its heavy reliance on imported fuel from the region.