West Asia Conflict Sparks Global Rate Hikes Amid Inflation Fears

Global central banks are keeping interest rates high as concerns over inflation persist due to the ongoing conflict in West Asia.

The Bank of Japan raised its policy rate by 25 basis points to 1.25 percent on September 18, taking it to a 31-year high.

This move comes amid prolonged tensions between the US and Iran, which have sent oil prices higher, adding to inflationary pressures across economies that rely heavily on imported energy.

The trend is visible across major economies, with the US Federal Reserve raising rates by 25 basis points in its first hike in three years, Australia having raised rates three times this year, and the European Central Bank resuming tightening.