00:00The Bank of Japan has raised interest rates to their highest level in more than three decades
00:06as higher energy costs continue to push up inflation.
00:10The central bank lifted its key policy rate from 0.75% to 1%, the highest level since 1995.
00:21The move comes as policymakers grapple with rising prices following a sharp increase in global energy costs.
00:28Japan has long been an outlier among major economies,
00:32keeping interest rates near zero for years as it battled weak growth and low inflation.
00:37That changed in 2024, when the Bank of Japan delivered its first rate hike in 17 years.
00:44Since then, inflationary pressures have remained elevated,
00:48with higher energy costs adding to the burden on households and businesses.
00:52Japan imports most of its oil and natural gas,
00:55leaving the economy particularly exposed to price shocks in global energy markets
01:00due to the conflict in the Middle East.
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