The Bank of Japan has increased its benchmark interest rate to a 31-year high, reaching 1%. This marks the first rate hike since 2007. The decision aims to counter economic pressures stemming from the conflict in Iran, according to the BBC. The increase, a quarter of a percentage point, signals a shift in Japan’s long-standing monetary policy. This move comes as Japan grapples with rising global economic uncertainties and potential inflationary pressures. Analysts suggest the bank is attempting to balance supporting economic growth with controlling inflation. The change reflects a broader trend among central banks globally to tighten monetary policy.