Bank of Japan Raises Benchmark Rate to 31-Year-High of 1.25%

Japan's central bank, the Bank of Japan, has raised its benchmark interest rate to 1.25% from 1.0%, a 31-year-high.

The decision was made after two days of deliberation by the monetary policy board and is seen as a move towards normalizing monetary policy in Japan.

Bank of Japan Governor Kazuo Ueda said that the economy is recovering gradually, with inflation close to the targeted 2%.

Analysts expect another rate hike later this year or early next year, but for now, the focus is on monitoring wage growth and other risk factors.