BoJ hikes rates to 31-year high

The Bank of Japan has raised interest rates for the first time in 31 years, deciding to increase the short-term interest rate to 1% from 0.75%. This move aims to combat inflationary pressures related to energy price shocks resulting from the war with Iran. The decision was made with a majority of 7 votes to 1, followed by a rise in the Nikkei index of up to 1%. There was a decrease in concerns over economic deterioration due to the conflict in the Middle East, although expectations of rising inflation throughout the year remain. The bank's decision reflects a gradual easing of monetary policy to control inflation and support the Japanese economy.

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