BOJ Hikes Rates to 31-Year High in Bid to Tame Inflation

The Bank of Japan raised interest rates to a 31-year high on Friday in a move widely expected by economists. The policy rate was increased from 1% to 1.25%, as the BOJ aims to forestall inflation risks that may exceed its 2% target.

At a two-day policy meeting, the board voted 7-2 in favor of the rate hike. Board members Toichiro Asada and Ayano Sato dissented from the decision.

BOJ Governor Kazuo Ueda is set to hold a news conference at 3:30 p.m. (0630 GMT) to explain the reasoning behind the decision.