What was the Bank of Japan's latest interest rate decision, and how does it compare to previous levels?

The Bank of Japan raised its short-term policy rate to 1% from 0.75%, marking the first hike since December and the highest level in 31 years—since 1995.

Why did the BOJ raise rates, and what key inflationary risk did it highlight in its statement?

The BOJ raised rates to counter price pressures stemming from the energy shock caused by the Iran war, noting that 'the price pass-through stemming from rising crude oil prices has been progressing at a relatively fast pace in business-to-business transactions, which could spread to an increase in consumer prices across a wide range of items,' and warning that 'there is a risk of underlying inflation deviating above our price target' given rising medium- and long-term inflation expectations.

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Bank of Japan Raises Interest Rates to 31-Year High

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The Bank of Japan raised its short-term policy rate to 1%, marking a 31-year high amid inflation concerns linked to crude oil prices and energy shocks. The Nikkei 225 reached a fresh record high following the announcement.

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