BOJ Raises Benchmark Rate to 31-Year High

Japan's central bank, the Bank of Japan (BOJ), has raised its benchmark interest rate to 1.25%, marking a 31-year high.

The move comes after decades of keeping interest rates near or below zero to boost borrowing and spending in an effort to combat deflation and revitalize Japan's economy.

Bank of Japan Governor Kazuo Ueda cited various risks, including the war in Iran, expanding market demand for artificial intelligence, and currency fluctuations, when explaining the decision.

Ueda emphasized that more time is needed to assess whether price increases remain stable, and to monitor wage growth and other risk factors before considering further rate hikes.