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Japan raises interest rate to new 31-year high to curb rising prices

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Earl Spencer walking, wearing a navy suit and a purple tie.

Japan’s central bank has raised its main interest rate to a fresh 31-year high as it continues to move away from decades of ultra-low borrowing costs and as the country faces increasing economic pressures.

In a widely expected move on Friday, the Bank of Japan (BOJ) increased the rate from 1% to 1.25% – a level not seen since 1995.

It comes as major central banks around the world are hiking rates as higher energy prices caused by the Iran war are helping to push up inflation.

On Wednesday, the US Federal Reserve raised its benchmark interest rate for the first time in over three years, while the European Central Bank also increased its borrowing costs earlier this month.

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The BOJ has been raising the rate since 2024, when it stood at minus 0.1%. It has now hiked rates six times in the last two and a half years.

Since then the bank has been steadily putting up the rate as it tries to reach a level similar to other major economies.

When a central bank raises rates, the country’s currency usually becomes stronger as it makes the it more attractive to traders.

Japan is facing several economic challenges including a persistently weak yen, rising prices and a shrinking workforce.

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Official figures published on Friday ahead of the BOJ announcement showed that inflation eased slightly last month.

Core inflation fell to 1.7% in August from 1.8% the previous month but remains close to the bank’s 2% target level.

While Japan’s inflation rate is not high by international standards, rising prices are a relatively new development in the economy.

Until recently the country had experienced very low inflation or deflation – falling prices – for around three decades.

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Global oil and gas prices have risen this year as the Iran war caused major disruptions to shipments through the key Strait of Hormuz shipping route.

Japan is particularly vulnerable to those supply interruptions as it is heavily reliant on energy from the Middle East.

The country’s currency has also been under pressure in recent months.

In August, Tokyo and Washington confirmed that they had jointly intervened to halt a slide in the yen after it fell to a fresh 40-year low.

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The coordinated intervention was the first since 2011, when both countries took action together to weaken the yen after the devastating earthquake and tsunami that hit eastern Japan.

Both Japan’s Ministry of Finance and US Treasury Secretary Scott Bessent said at the time that they would not hesitate to conduct more joint interventions in the future.

Bessent has also been ramping up pressure on the BOJ to raise interest rates to help support the yen, calling on its Governor Kazuo Ueda to “do the right thing”.

This breaking news story is being updated and more details will be published shortly. Please refresh the page for the fullest version.

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ZIM Integrated: Why Bulls Overestimated The Hapag-Lloyd Arbitrage Spread

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Cargo containers Hapag-Lloyd stored on the cargo ships.

ZIM Integrated: Why Bulls Overestimated The Hapag-Lloyd Arbitrage Spread

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Migration policy fails to ease concern for harvest workers, station stay staff

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Migration policy fails to ease concern for harvest workers, station stay staff

Immigration officials have been urged to process harvest worker visas immediately to ensure farmers can staff their operations when they begin taking their crops off from next week.

The federal government on Thursday lifted its pause on skilled worker visa processing from overseas which it implemented a few weeks ago amid scrutiny over migration policy and its impact on housing availability.

In doing so, new migration policy was unveiled which would prioritise processing of skilled migrant visas for agriculture, construction, resources, fishing, defence and healthcare.

Backpacker, international student and visitor visas rules will be tightened.

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The pause on skilled migrant intake has caused anxiety in regional WA ahead of the 2026-27 grain harvest, which is due to start in the Mid West as early as next week.

One group of farmers in Esperance told ABC Perth early in the week they had about 50 migrant workers held up overseas because of processing delays.

Pastoralists and Graziers Association of Western Australia president Digby Stretch said the federal government must process harvest worker visas immediately to undo the damage they had done.

“I would like to see the federal government look very carefully at the lobbying and the facts that have been put in front of them over the last weeks and months while this has been going on and have enough hubris to realise that they have severely disenfranchised a really important part of Australia,” he said.

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“Make amends by fast-tracking what they paused and make sure that they don’t end up short-changing us for the vital staff that we have got that we can’t get anywhere else.

“It is not as though the crop is going to wait for farmers to get their staff before it’s ready to harvest.”

Under changes announced by Immigration Minister Tony Burke, backpackers will now __

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Operators of station stays on WA pastoral leases launched a petition last week calling on the federal government to return migration policy to the status quo.

Some of WA’s larger station stays employ more than 20 backpackers at a time during peak season.

There remains concern that, while working on a pastoral property, the fact that staff would be employed in the tourism sector meant they would not be prioritised.

Wooramel River Retreat, Warroora, Murchison House and Cheela Plains Station are among WA operators which have put their names to the Australian Tourism Industry Council petition.

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“Cuts to Working Holiday Maker and Tourist visas could hit Wooramel and other station stays across WA hard,” Wooramel posted to social media.

“Long-stay visitors travel further, stay longer, and help fill the seasonal roles that keep us welcoming guests and delivering the outback experiences you love.”

Mr Stretch said access to migrant and backpacker labour was a hot topic across regional WA.

“The government is seriously out of touch with the staffing requirements that we have in regional Australia as to how they’re dealing with this crisis,” he said.

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“For any of you that are traveling around, have a look at who’s serving your coffee and who’s manning the roadhouses and who’s in the service industry out there in the bush. 

“There will be an accent behind nearly everybody you’re talking to.

“It is unfortunate that the government have made this knee-jerk reaction as far as what we’re needing for regional workforce.”

Mr Stretch said a shortage of harvest workers could lead to safety issues for farmers and quality issues for crops.

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Wooramel River Retreat and Cheela Plains were contacted for comment.

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Costco Earnings May Disappoint, but There’s a Special Catalyst That Could Lift the Stock

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Costco Earnings May Disappoint, but There’s a Special Catalyst That Could Lift the Stock

Costco Earnings May Disappoint, but There’s a Special Catalyst That Could Lift the Stock

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Venezuela nears deal to move $4 billion gold reserve to New York, FT says

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Venezuela nears deal to move $4 billion gold reserve to New York, FT says

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Fortescue acquires Formula E racing team

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Fortescue acquires Formula E racing team

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Restructuring and insolvency firm FRP opens Exeter office

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The company said the new location reflected its ‘ongoing approach to growth’

Luke Venner is the new head of FRP's Exeter office

Luke Venner is the new head of FRP’s Exeter office(Image: FRP)

Specialist business advisory firm FRP has opened an office in Exeter. The company has appointed Luke Venner to head up the new base as it continues to expand its national footprint.

Mr Venner joins FRP after more than 20 years at South West-based accountancy and advisory firm Bishop Fleming, where he began his career as a trainee accountant before progressing to partner in 2023.

In his new role, Mr Venner will lead the establishment of FRP’s Exeter office and develop its restructuring advisory practice across Devon and the wider South West region.

He will work closely with staff across FRP’s UK network of offices, giving businesses in the region access to the firm’s wider corporate finance, debt advisory, forensic services, real estate advisory and financial advisory expertise, the company said.

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“Exeter has a vibrant and varied business community, and I have spent my career working with companies and advisers across the city and the wider South West,” said Mr Venner.

“Opening an office here gives FRP the opportunity to build on those relationships while bringing the depth of expertise available across the firm closer to local clients.

“Businesses across all sectors continue to manage pressure on costs and funding, and clear advice at the right time can help management teams choose a course of action and move early enough to protect value. I look forward to working with colleagues across FRP to support Exeter’s businesses when the decisions they face matter most.”

FRP already has existing operations across the South of England, including in Bristol, Southampton, Bournemouth and Brighton. The firm employs more than 950 employees in the UK, including 108 partners.

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Geoff Rowley, chief executive at FRP, added: “Luke’s appointment is an important step in FRP’s continued growth and gives us a strong foundation from which to build in Exeter. He has the experience and leadership to develop our presence in the city and connect it effectively with our wider network.

“The new office reflects our ongoing approach to growth of investing in markets where we see a clear opportunity and have the right people to build for the long term. Exeter fits that approach well, and its addition will further strengthen our national proposition.”

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Dorian LPG Ltd. (LPG) Presents at Pareto Securities' 33rd Annual Energy Conference – Slideshow

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Dorian LPG Ltd. (LPG) Presents at Pareto Securities' 33rd Annual Energy Conference – Slideshow

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Jula Inrig, Travere R&D EVP, sells $2.78m in shares

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Jula Inrig, Travere R&D EVP, sells $2.78m in shares

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Travere Therapeutics EVP Peter Heerma sells $17.8m in company stock

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Travere Therapeutics EVP Peter Heerma sells $17.8m in company stock

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Asia chip, tech stocks track Wall St gains as yields fall

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Asia chip, tech stocks track Wall St gains as yields fall

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