BOJ Raises Interest Rates to 31-Year High Amid Inflation Pressures

The Bank of Japan (BOJ) raised interest rates to their highest level in 31 years on Friday, joining other major central banks in fighting persistent inflation pressures.

The widely expected move takes interest rates closer to levels deemed neutral to the economy and marks another step away from decades of ultra-low rates that cemented the yen's status as a cheap global funding currency.

The BOJ raised its policy rate to 1.25 percent from one percent by a 7-2 vote, with board members Toichiro Asada and Ayano Sato dissenting.