BoJ Raises Benchmark Interest Rate to 1.25%

Japan's central bank has taken a significant step towards normalizing monetary policy by raising its benchmark interest rate to 1.25%, marking the highest level in 31 years.

The Bank of Japan has been trying to adjust its policies after decades of keeping interest rates near or below zero to stimulate borrowing and spending, which have struggled due to deflation.

The new rate is a result of the bank's efforts to control inflation and stabilize the economy, following the country's prolonged period of low growth.