BOJ Hikes Rates to 1.25% Amidst Shift in Policy Phase

The Bank of Japan (BOJ) has raised its policy rate to 1.25%, marking the highest level in 31 years since April 1995.

According to Governor Kazuo Ueda, Japanese monetary policy has entered a 'new phase' with underlying inflation approaching the 2% target.

The decision was made despite dissenting votes from two Policy Board members, Toichiro Asada and Ayano Sato, who argued that economic fundamentals may not yet be sufficient to support this rate hike.