The Globe and Mail reports in its Saturday edition that the Bank of Japan raised interest rates on Friday in a closely watched move that followed unusual scrutiny by the Trump administration. A New York Times dispatch to The Globe says Japan's central bank moved its policy rate from 1 per cent to 1.25 per cent, the highest level in 31 years in a country that has long combated stagnant prices with near-zero interest rates. Markets had widely expected the bank to raise rates at its September meeting, as prices in Japan have climbed steadily in recent years. It followed rate hikes from the U.S. Federal Reserve on Wednesday and the European Central Bank last week, as countries grapple with rising energy prices from the Iran war. U.S. Treasury Secretary Scott Bessent publicly pressured Tokyo to tighten policy. The Bank of Japan "already had very good reason to raise interest rates," said Izumi Devalier, Bank of America's chief Japan economist. But recent rhetoric from the U.S. creates the impression that Japan's central bank, which is independent by law, "was co-opted into policy," Ms. Devalier said. "It's not good for monetary policy." Prime Minister Sanae Takaichi has leaned on the Bank of Japan to keep interest rates low.