Bank of Japan Hikes Interest Rates to 31-Year High

The Bank of Japan has increased interest rates to their highest level in 31 years. The decision was made on Friday, and it brings the new rate to 1.25 percent. This move aims to curb inflation concerns, as the bank's target is two percent.

The policy board voted seven to two in favor of the increase from one percent. Following this announcement, the Japanese yen fell against major currencies, dropping 0.6 percent to 156.91 against the dollar.

Data released on Friday showed Japan's core inflation holding steady near the central bank's two-percent target in August. This highlights mounting price pressures in the country.