BoJ Hikes Interest Rate to 1.25 Percent Amid Inflation Concerns

The Bank of Japan has raised its key interest rate to 1.25 percent in an effort to combat inflation fueled by surging energy prices and a weak yen.

This move was anticipated by markets following recent tightening from the European Central Bank and the US Federal Reserve.

The central bank's decision, carried out with a 7-2 majority vote, marks a more than 30-year high in interest rates.

The BoJ cited increasing pressure to lift borrowing costs due to ongoing inflation concerns, exacerbated by the Middle East crisis and its impact on oil prices.