BOJ Hikes Rate to 1.25% in Bid to Tame Inflation

The Bank of Japan has raised its benchmark interest rate to 1.25%, marking the highest level since April 1995.

This decision, made by Governor Kazuo Ueda and passed with a 7-2 vote, aims to combat inflation pressures that continue to rise despite polite requests from the central bank to calm down.

The BOJ's calculus factored in rising global energy prices, a stubbornly weak yen, and broader tightening cycles from central banks around the world.