Bank of Japan raises interest rates to 31-year high … of 1%

Country acts amid Iran war inflation pressures, but US Fed and Bank of England expected to hold rates

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The Bank of Japan (BoJ) has raised interest rates to a 31-year high as it tries 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”.