Japan hikes interest rate to highest level since 1995 as inflation bites

The BOJs latest rate rise comes as other major central banks around the world are moving in the opposite direction - lowering the cost of borrowing.

On Thursday, the Bank of England cut its main interest rate to 3.75%, the lowest level since February 2023.

Last week, the US Federal Reserve lowered interest rates for the third time this year, even as internal divisions create uncertainty about additional cuts in the coming months.

The central bank said it was lowering the target for its key lending rate by 0.25 percentage points, putting it in a range of 3.50% to 3.75% - its lowest level in three years.