Japan raises interest rates to 31-year high to curb impact of rising prices
The Bank of Japan has raised interest rates to 1.25%, a 31-year high, to combat inflation linked to global conflicts. This move aligns Japan with other major central banks tightening monetary policy.
Why it matters
The rate hike reflects global economic instability and has significant implications for currency markets and international investment strategies.
The Bank of Japan has been raising rates since 2024, when it lifted its base rate out of negative territory. The Bank of Japan has been raising rates since 2024, when it lifted its base rate out of negative territory. Bank of Japan Japan raises interest rates to 31-year high to curb impact of rising prices Increase from 1% to 1.25% follows US Federal Reserve and European Central Bank tightening monetary policy
Prefer the Guardian on Google Japan’s central bank has increased interest rates to a fresh 31-year high as it attempts to combat high 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.
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