Bank of Japan raises its key interest rate to a three-decade high of 1%, citing inflation

The Bank of Japan raised its benchmark interest rate to 1% on Tuesday, citing challenges stemming from a weak Japanese yen and higher prices. The central bank's increase in the uncollateralized overnight rate, by a quarter of a percentage point from 0.75%, puts it at a three-decade high. The central bank has been trying to normalize monetary policy lately after decades of keeping interest rates near or below zero.