BOJ Raises Benchmark Interest Rate to Highest Level Since 1995

The Bank of Japan (BOJ) has raised its benchmark interest rate to 1.25%, marking the highest level since 1995. The decision was made in a 7-2 vote, with underlying inflation nearing 2%. The move is seen as an attempt to combat rising prices and stabilize the yen against the US dollar.

The BOJ's rate hike is significant, considering that interest rates have been at historic lows for years. The 25 basis point increase is a step towards normalizing monetary policy, but some analysts warn of potential risks to the economy.