BOJ Raises Interest Rates Amid Rising Inflation Risks

The Bank of Japan (BOJ) has raised its interest rates for the second time in three months, and experts say the decision was driven primarily by rising inflation risks.

According to market analysts and economists, the BOJ's policy rate has been increased from around 1.0 percent to approximately 1.25 percent, which is the highest level since 1995.

Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management, believes that inflation risks are the primary reason behind the BOJ's decision to raise rates this time.

Ichikawa noted that Japan's underlying inflation rate is already close to its 2 percent target and that factors such as robust demand related to artificial intelligence, yen depreciation, and currency movements have increased the risk of inflation exceeding 2 percent.