Bank of Japan raises interest rates to 31-year high amid Iran war inflation pressures

Country follows ECB in increasing borrowing costs, but US Fed and Bank of England expected to hold rates

The Bank of Japan (BoJ) has raised interest rates to a 31-year high, as it tried to dampen inflationary pressures created by the Iran war.

Policymakers in Tokyo raised the BoJ’s short-term policy rate by a quarter of one percentage point, to 1% from 0.75%, and warned that companies were passing on rising oil costs to each other at a “relatively fast pace”.

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