Bank of Japan Hikes Rates to 31-Year High Amid Energy Crisis

The Bank of Japan raised interest rates to their highest level in over three decades on Friday, hiking them by 25 basis points to 1.25 percent.

The decision was expected following similar moves by the European Central Bank and the US Federal Reserve, but it wasn't unanimous as it was carried by a 7-2 majority vote.

Pressure has increased on officials to further tighten monetary policy as surging energy prices and a weak yen continue to drive up inflation.

The bank said it will continue to raise the policy interest rate, citing underlying CPI inflation approaching two percent and accommodative financial conditions.