BoJ Hikes Interest Rate, Yen Falls Amid Inflation Concerns

The Bank of Japan (BoJ) has raised its benchmark interest rate to 1.25%, its highest level since April 1995, in a bid to prevent inflation from overshooting its 2% target.

This decision was made despite the Japanese yen falling by 0.60% against the US dollar following the economic releases.

The BoJ's Governor Kazuo Ueda stated that the central bank has entered a new phase focused on preventing inflation from overshooting its 2% target, suggesting further interest rate hikes may be in store for future meetings.