Japan's Central Bank Hikes Interest Rates to 31-Year High Amid War‑Driven Inflation

Japan's central bank moved to increase its policy interest rate to the highest level in 31 years. The decision was taken despite opposition from Prime Minister Takaichi. Officials cited mounting inflation linked to war‑related energy price shocks. The move also responded to pressure from the United States to address rising costs. A weakening yen added urgency to the policy shift. The rate hike aims to curb price growth and stabilize the currency. Analysts view the step as a signal that Japan will prioritize inflation control over short‑term growth. Market watchers will monitor how the policy affects borrowing costs and the yen's trajectory.