The central bank of Japan raises the rate. The rate is now 1 percent. This is the highest level in 31 years. The bank reacts to high energy prices. A war in Iran makes oil expensive. Gas is also expensive now.
Prices in Japan rise fast. This is called inflation. Inflation means money is worth less. Firms make products more expensive for customers. They pay more for energy from abroad. The currency Yen is weak. A weak Yen makes shopping abroad expensive. The central bank wants to stop this.
Bank boss Kazuo Ueda is not at the meeting. He is in the hospital. His deputy Shinichi Uchida makes the decision. The economy in Japan gets better now. The bank might raise the interest rate again soon.
