BoJ Hikes Rate to Three-Decade High Amid Inflation Fears

The Bank of Japan (BoJ) has raised its benchmark interest rate by 25 basis points to 1.25%, marking the highest level in over three decades since April 1995.

The decision was made following a vote on Friday, with seven BoJ board members supporting the increase while two others dissented.

The BoJ cited persistently rising inflation and global crude oil prices as reasons for the rate hike, stating that wholesale inflation remains high and price pressures are beginning to spill over into consumer prices.

Despite the increase, Japan's interest rate remains below other major central banks, including the Federal Reserve and European Central Bank.