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

Japan hikes interest rate to highest level since 1995 in a move by the Bank of Japan aimed at tackling inflation. The rate increase, the first since January, comes as new Prime Minister Sanae Takaichi aims to lower inflation while keeping government borrowing costs low. The rise to "around 0.75%" is seen as a historic shift after decades of low rates in Japan, with expectations for another rate hike next year. Meanwhile, other major central banks, like the Bank of England and the US Federal Reserve, are moving in the opposite direction by lowering interest rates.