Japan raises interest rates to 31-year high to curb impact of rising prices

Increase from 1% to 1.25% follows US Federal Reserve and European Central Bank tightening monetary policy

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Japan's central bank has increased interest rates to a fresh 31-year high as it attempts to combat high global inflation linked to the war in Iran.

The Bank of Japan voted to raise its target interest rate from 1% to 1.25%, the highest level since 1995.