Japan’s central bank has raised its benchmark interest rate from 0.75 per cent to one per cent – the highest level since 1995 – as it tries to respond to rising inflation and a weakening yen.
The decision by the Bank of Japan (BOJ) was reportedly influenced by higher energy costs due to instability in the Middle East. A weak yen, hovering around 160 yen to the US dollar, also raised fears of market intervention.
