BOJ Raises Interest Rates to 1.25%, Yen Falls, Bitcoin Rises

The Bank of Japan (BOJ) raised its benchmark interest rate by 25 basis points to 1.25%, marking the highest level in 31 years.

This move aims to tackle inflation and a weak yen, with the BOJ responding to international pressure for tighter monetary policy.

The Japanese yen weakened against the US dollar following the hike, while Bitcoin gained against the yen on the Tokyo bitFlyer exchange.

This is the BOJ's second rate increase in three months, impacting global markets due to Japan's long history of near-zero rates and the carry trade involving yen borrowing.