BOJ Hikes Rate to 1.25% Amid Inflation Risks

The Bank of Japan (BOJ) has raised its benchmark interest rate to 1.25% in a move aimed at addressing growing inflation risks, according to Governor Kazuo Ueda.

This decision comes after a two-day board meeting, where the BOJ voted to bump up its uncollateralized overnight call rate in response to market pressure.

Ueda stated that monetary policy has entered a new phase, citing the need for tighter measures to control inflation. The move marks a significant shift from the BOJ's previous stance and is seen as a response to growing concerns over upside inflation risks.