BOJ Hikes Rate to 31-Year High of 1.25% Amid Global Monetary Shift

The Bank of Japan (BOJ) has raised its policy interest rate by 25 basis points to 1.25%, marking a significant shift in global monetary policy.

This move takes borrowing costs to their highest level in 31 years, exceeding the BOJ's estimated neutral-rate range and signaling tighter policy.

The decision was approved by a 7-2 vote at the BOJ's two-day policy meeting, with Board members Toichiro Asada and Ayano Sato dissenting.

BOJ Governor Kazuo Ueda is scheduled to address the media later today, and investors will closely monitor his comments for clues about further interest rate increases.