Japan Hikes Interest Rates Again Amid Soaring Energy Costs

Japan is set to raise its interest rates for the second time this year, following the US Federal Reserve's decision to increase rates. The country has been grappling with soaring energy costs and inflation, which have pushed its currency to a 40-year low against the US dollar.

The yen hit a record low of 135.6 against the US dollar in January, prompting a joint intervention from Japan and the US to stabilize the currency.

Japan's interest rates have been zero percent for decades until June this year when they rose to one percent, a level not seen since the 1990s.