BoJ Raises Benchmark Rate to 1.25% Amid Inflation Concerns

The Bank of Japan has raised its benchmark interest rate to 1.25% in an effort to quell rising inflationary pressures, which have been exacerbated by the war in Iran and subsequent oil price increases.

This move follows a similar decision by the US Federal Reserve earlier this week, and is seen as a step towards normalizing monetary policy after decades of low interest rates.

The Bank of Japan has set an inflation target of around 2%, which it says is currently being met. However, some consumers are complaining about the recent surge in prices, particularly for gas and oil-related products.