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BOJ Hikes Interest Rate as Japan's Takaichi Heads to Washington

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The Bank of Japan (BOJ) raised its key interest rate to 1.25 percent from 1.0 percent on Friday, accelerating monetary tightening as it seeks to contain inflation fueled by higher oil prices and a weaker yen.

The decision was widely expected, but two of the Policy Board's nine members, Toichiro Asada and Ayano Sato, opposed it.

Prime Minister Sanae Takaichi is also planning to meet with President Donald Trump in the U.S. on Tuesday as she seeks to align the two countries' positions on China ahead of Trump's summit with Chinese President Xi Jinping expected on Thursday.

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