Bank of Japan Raises Benchmark Rate to 1.25%

Japan's central bank raised its benchmark interest rate to a 31-year-high of 1.25% on Friday, following a two-day monetary policy board meeting. The decision was widely expected and reflected in global markets.

The rate hike, which increased the policy rate by 0.25 percentage points, comes after the Federal Reserve's recent key rate increase. Pressure from the US has been building for Japan to raise rates due to concerns about the weakening yen.

The Bank of Japan intervened with the US in a recent joint effort to prop up the yen, which is currently trading at around 155 yen per dollar.