BOJ Hikes Rate to 1.25%, Boosts Bitcoin Above $77K

The Bank of Japan (BOJ) raised its benchmark interest rate to 1.25%, marking the highest level in 31 years. The decision was widely expected, but two policymakers opposed the move, suggesting that the BOJ may take a slower approach to future hikes.

This is the second rate hike in three months and pushes Japanese borrowing costs to their highest level since 1995. The BOJ board voted 7-2 on the decision, with board members Toichiro Asada and Ayano Sato opposing the hike.

The central bank faces higher price pressure as it tries to keep inflation near its 2% target. Japan's core consumer inflation rose 1.7% year over year in August, while energy costs and a weaker yen continue to put pressure on prices.