BOJ Hikes to 1.25%: Japan Returns to Rates Last Seen in 1990

The Bank of Japan (BOJ) is expected to raise its policy rate to 1.25% at its meeting ending on Friday, marking a level not seen in 31 years.

This move would be another step away from the ultra-low-rate era that made the yen a cheap way to borrow and invest elsewhere.

Policymakers are still worried about inflation, particularly oil costs, which could keep price pressures alive.

The BOJ's Governor Kazuo Ueda will signal whether further hikes are on the table, with markets paying close attention to his words.