Japan's central bank has increased its main interest rate to a new 31-year high after a surge in global energy prices, BBC reported. 

On Tuesday, the Bank of Japan (BOJ) raised its so-called policy rate to 1% from 0.75% - a level not seen since 1995.

The decision comes as some other central banks have raised interest rates this year as the US-Israel war with Iran pushed up the cost of living.