BOJ Raises Rates to Combat Inflation and Weakening Yen

Japan's central bank has raised interest rates from 1% to 1.25%, marking the highest level in 31 years.

This move aims to combat rising inflation and a weakening yen, which had fallen to its lowest value in 40 years.

The bank has increased interest rates for the sixth time in two and a half years, with the goal of controlling inflation, strengthening the yen, and reducing reliance on imported energy due to the ongoing Middle East war.

Like Japan, other major economies such as the US and Europe have also raised borrowing costs to combat inflation.