BOJ Raises Benchmark Interest Rate to 1.25% Amid Global Market Pressure

The Bank of Japan (BOJ) has raised its benchmark interest rate to 1.25%, marking a significant shift in monetary policy after decades of near-zero rates.

This decision, announced on Friday, comes as part of the BOJ's efforts to normalize monetary policy and combat deflation.

According to Governor Kazuo Ueda, the rate increase was made after considering various risks, including the war in Iran, currency fluctuations, and market demand for artificial intelligence.

The move is also seen as a response to pressure from the US Federal Reserve, which raised its key rate earlier this week.