BOJ Hikes Rates to 31-Year High Amid Inflation Concerns

The Bank of Japan (BOJ) raised its policy rate by 25 basis points to 1.25%, marking the highest level since 1995. This move follows a quickening in the BOJ's rate hike cycle, with the rise taking place three months from the BOJ's last hike.

The decision was split 7-2, with board members Toichiro Asada and Ayano Sato dissenting from the hike. They are seen as reflationists and were appointed by Prime Minister Sanae Takaichi earlier this year.

The rise in rate hikes was widely expected, with almost 90% of economists surveyed by CNBC expecting the 25-basis-point tightening. Those surveyed also correctly predicted the dissenters to the decision.