BOJ Hikes Rates Amid Inflation Worries

The Bank of Japan raised its policy interest rate from 1.0% to 1.25% on September 18, marking the highest level in 31 years.

The move was aimed at containing growing inflation risks, but the yen weakened sharply after the decision as markets focused on two dissenting votes and uncertainty over future increases.

The BOJ has tightened policy twice within three months, moving away from ultra-low interest rates that characterized Japan's monetary policy for decades.