BOJ Jumps to 31-Year High with 1.25% Interest Rate Hike

The Bank of Japan (BOJ) has raised interest rates to their highest level in 31 years, increasing the policy rate from 1% to 1.25%. This move was widely expected as the BOJ aims to forestall risks of inflation overshooting its 2% target.

In a two-day policy meeting that ended on Friday, the board voted 7-2 in favor of raising interest rates. Board members Toichiro Asada and Ayano Sato dissented from the decision.

BOJ Governor Kazuo Ueda is expected to hold a news conference at 3:30 p.m. to explain the decision.