BOJ Hikes Interest Rates to 31-Year High in Bid to Tame Inflation

The Bank of Japan (BOJ) raised interest rates to a 31-year high in a widely expected move, aiming to prevent inflation from overshooting its target of 2%. The rate hike brings the policy rate to 1.25%, up from 1% previously.

In a two-day policy meeting that concluded on Friday, the BOJ's board voted 7-2 in favor of raising interest rates. Board members Toichiro Asada and Ayano Sato dissented from the decision.

The move is seen as a response to concerns about inflation exceeding the BOJ's target, with Governor Kazuo Ueda expected to hold a news conference at 3:30 p.m. (0630 GMT) to explain the decision.