BOJ Boosts Interest Rate to 31-Year High Amid Inflation Fears

The Bank of Japan (BOJ) raised its key interest rate by 0.25 percentage points to 1.25%, marking a significant increase in borrowing costs for consumers and businesses.

This decision, announced on September 18, is the BOJ's highest rate hike since 1995 and reflects concerns about higher crude oil prices and a weaker yen that could drive up import costs and inflation.

The central bank approved the increase with a 7-2 vote, despite two policy board members favoring keeping rates unchanged.

Japan's core consumer price index rose 1.7% in August from a year earlier, while price pressures excluding energy have continued to build.