BOJ Hikes Interest Rate to 31-Year High Amid Inflation Concerns

The Bank of Japan (BOJ) has raised its benchmark interest rate to 1.25% in just three months, marking the highest level since 1995.

This decision was made during a two-day monetary policy meeting that ended on the 18th, with the BOJ increasing the short-term policy rate by 0.25 percentage points from around 1.0% to around 1.25%.

This marks another policy rate hike just three months after the rate was raised from around 0.75% to around 1.0% last June, which is the fastest pace since current Governor Kazuo Ueda took office.

The move comes as Japan's central bank remains cautious against a sharper-than-expected inflation rise amid rising imported energy and food prices driven by higher crude oil prices and a weak yen.