BOJ Hikes Rate to 31-Year High Amid Inflation Fears

The Bank of Japan (BOJ) has made its most significant move in decades by raising its key interest rate to 1.25%, marking a 31-year high.

This decision was widely anticipated, with economists and analysts expecting a 25-basis-point hike, which the BOJ delivered.

The central bank cited rising inflation as a major concern, stating that higher rates are necessary to prevent prices from exceeding its annualized target of 2%.

Japan's inflation rate has indeed been on the rise, reaching an annualized rate of 1.9% in August.