Economy

Bank of Japan hikes rates to 31-year high to battle inflation

The Bank of Japan (BoJ) has raised its benchmark interest rate to a 31-year high in a bid to tame inflation. Officials faced mounting pressure to tighten monetary policy further as a spike in global oil prices, driven by the West Asia crisis, added to domestic inflationary pressures in the Japanese economy.

Nabka Insight

A major central bank's rate move to a multi-decade high is a standard international-economy question.

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Key facts

  • The Bank of Japan raised interest rates to a 31-year high.
  • The move aims to combat rising inflation.
  • An oil-price spike from the West Asia crisis added to price pressures.

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