Japan raises rates to 31-year high over Iran war inflation

The Bank of Japan raised its short-term policy rate by a quarter point to 1%, the highest level in 31 years, in a move to counter inflationary pressures stemming from the Iran war. Policymakers warned that companies are passing on rising oil costs at a 'relatively fast pace,' driving broad-based price increases. The BoJ follows the European Central Bank in tightening, while the US Federal Reserve and Bank of England are expected to hold rates steady. The decision reflects the deepening global economic impact of the Iran conflict, as Japan struggles with imported inflation from higher energy and commodity prices.