Bank of Japan Raises Interest Rates to 31-Year High of 1.25%

The Bank of Japan raised its policy interest rate by 25 basis points to a 31-year high of 1.25% to curb inflation risks.

The policy board voted 7–2 in favor of the hike, with board members Toichiro Asada and Ayano Sato dissenting.

The yen weakened 0.5% to 156.75 per US dollar in immediate reaction, though it remains up nearly 2% for the month.