BOJ Raises Benchmark Rate to 1.25%

Japan's central bank has raised its benchmark interest rate to 1.25% from 1.0%, marking a 31-year high. This move comes as the Bank of Japan attempts to normalize monetary policy after decades of keeping rates near or below zero.

The decision was expected, with recent global markets already factoring in the increase. The U.S. Federal Reserve raised its key rate this week, and analysts say the Bank of Japan may raise interest rates again later this year or early next year.

Inflationary pressures are rising due to the war in Iran, which has sent oil prices soaring. This is a concern for resource-poor Japan, which imports most of its oil.