BOJ Hikes Rate to 31-Year High Amid Global Inflation Pressures

The Bank of Japan (BOJ) raised its policy rate to a 31-year high of 1.25% on September 18, but two board members dissented from the decision.

The move was widely expected and follows similar hikes by European and US central banks in response to global inflation pressures.

According to BOJ governor Kazuo Ueda, while economic and price developments are moving in line with its baseline forecast, there is a risk of underlying inflation deviating from the 2% target.

Core consumer inflation held steady near the BOJ's 2% target in August, as companies continued to pass on rising costs for food and grocery items.