BOJ Raises Rates to 31-Year High Amid Global Inflation Concerns

Japan's central bank has raised interest rates to a 31-year high as it attempts to combat 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, in an effort to curb rising prices and stabilize the yen against the dollar.

The vote was not unanimous, with two board members dissenting to the increase, leaving doubts about whether officials will be cautious in tightening monetary policy further.

Despite this, investors expect another rate hike in December, citing concerns that underlying inflation could deviate upwards from its 2% target.