BOJ Hikes Interest Rate to 31-Year High

The Bank of Japan has made its latest move to normalize monetary policy by raising the benchmark interest rate to 1.25% from 1.0%. This increase marks a significant milestone, as it is the highest interest rate set in 31 years.

The decision aims to encourage borrowing and spending to boost Japan's economy, which has been struggling with deflation for decades.

The Bank of Japan has been gradually increasing interest rates since last year, trying to strike a balance between stimulating economic growth and managing inflation. This move is part of its efforts to transition away from the near-zero interest rate policy that had been in place since 1995.