BOJ Hikes Rates to 1.25% Amid Inflation Concerns

The Bank of Japan has raised its benchmark interest rate to 1.25%, marking the highest level in 31 years. The decision was made after a two-day monetary policy board meeting, and it's been widely expected by global markets.

Bank of Japan Governor Kazuo Ueda explained that the decision was reached after considering various risks, including the war in Iran, growing demand for artificial intelligence, and currency fluctuations.

The Bank of Japan has been trying to normalize its monetary policy, which had kept interest rates near or below zero for decades to stimulate borrowing and spending. The move is seen as a response to concerns about inflation and the weakening yen.