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

The Bank of Japan (BOJ) has raised its interest rates to their highest level since 1995, in an effort to combat inflation and meet its target of 2% annual price growth. The BOJ's policy rate was increased from 1% to 1.25%, a move that was widely anticipated by economists. The decision was made at the central bank's two-day policy meeting, which concluded on Friday.

Board members Toichiro Asada and Ayano Sato dissented from the majority vote, which saw seven out of nine members in favor of the rate hike. Kazuo Ueda, the BOJ governor, stated that the decision was made to forestall risks of inflation overshooting its target.