Japan Hikes Interest Rate to 31-Year High Amid US Pressure

The Bank of Japan (BoJ) has raised its benchmark interest rate by 0.25 percentage points, marking the fastest pace of increase since Kazuo Ueda took office in June.

This decision was made at a two-day financial policy meeting from August 17-18, where the BoJ increased the benchmark short-term policy rate from 1.0% to 1.25%, its highest level in 31 years since 1995.

The move comes as Japan is concerned about rising crude oil prices and a weak yen, which has led to higher imported energy and food prices. The US Treasury Secretary Scott Bessant had also called on Japan to take steps to correct the weakening yen, citing differences in interest rates between Japan and the US.