BOJ Hikes Interest Rate to Fresh 31-Year High Amid Economic Pressures

The Bank of Japan (BOJ) has raised its main interest rate to a fresh 31-year high, increasing it from 1% to 1.25%. This move comes as the country faces rising economic pressures, including persistently weak yen and inflation.

The BOJ's decision follows similar actions by major central banks around the world, such as the US Federal Reserve and European Central Bank, which have also raised interest rates in recent weeks.

Market analyst Lale Akoner from eToro noted that 'one of the world's last sources of ultra-cheap money is disappearing', referring to the BOJ's shift away from decades of ultra-low borrowing costs.