BOJ Hikes Rate to 31-Year High Amid Inflation Worries

The Bank of Japan (BOJ) has raised its benchmark interest rate to 1.25%, its highest level since 1995, in a bid to combat inflation risks.

The decision, which was widely expected by economists, marks the central bank's latest move in its monetary policy normalization cycle.

The BOJ cited concerns that Japan's inflation could exceed its target of 2%, with the country's annual consumer inflation rate currently standing at 1.9% and core inflation easing to 1.7% from 1.8% in July.