BOJ Hikes Rate to 30-Year High Amid Inflation Fears

The Bank of Japan raised its policy interest rate to 1.25 percent on Friday, marking a more than 30-year high.

The decision was carried by a 7-2 majority vote and was expected by markets following the tightening efforts of other central banks like the European Central Bank and US Federal Reserve.

The hike aims to counter inflation fueled by surging energy prices and a weak yen, which has fallen to its weakest level against the dollar in 40 years.

As underlying CPI inflation approaches two percent, the bank will continue to raise the policy interest rate, according to its statement.