Japan raises interest rate to new 31-year high to curb rising prices

The Bank of Japan has raised its interest rate to a 31-year high, lifting it by 25 basis points to 1.25 percent on Friday. The move was widely expected by markets following recent monetary tightening.

The central bank announced that it intends to increase rates further in order to counter rising prices and curb inflation. Officials noted that the current inflationary pressures are being fuelled by surging energy costs and a weak yen.

This decision aligns Japan with central banks around the globe that have similarly hiked borrowing costs as high energy prices continue to push up inflation worldwide.