Japan’s central bank has raised the cost of borrowing to its highest level in 17 years, as it tries to curb rising prices.
The move by the Bank of Japan (BOJ) to raise its short-term policy rate to 0.5% comes just hours after the latest economic data showed prices rose last month at the fastest pace in 16 months.
The BOJ’s last interest rate hike in July, along with a weak jobs report from the US, caught investors around the world by surprise, which triggered a stock market selloff.
The bank’s governor, Kazuo Ueda, signalled this latest rate hike in advance in a bid to avoid another market shock.
BBC News
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