BoJ Hikes Interest Rates to Highest Level Since 1995 Amid Yen Weakness

The Bank of Japan has raised interest rates to 1.25 percent, marking its highest level in 31 years. This decision was made by a majority vote, with two members of the board voting against a rate rise.

The BoJ's move is aimed at curbing inflation and preventing a further widening of the yield spread with the United States. Wholesale inflation remains high and has begun to feed through to consumer prices.

This rate increase follows those decided by the European Central Bank and the Federal Reserve in recent days. The yen, which was already under pressure due to its weakness, continued to lose ground against the dollar despite the BoJ's decision.