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 increased the rate from one percent to one-point-two-five percent, 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.