BOJ Raises Interest Rates to 31-Year High in Fight Against Inflation

The Bank of Japan (BOJ) has raised interest rates to a 31-year high, marking another step away from decades of ultra-low rates. The move, which was widely expected, takes interest rates closer to levels the BOJ deems neutral to the economy.

The BOJ raised its policy rate to 1.25% from 1% by a 7-2 vote, with dovish board members Toichiro Asada and Ayano Sato dissenting to the decision.

BOJ Governor Kazuo Ueda has remained vague on the potential speed and degree of future rate hikes, arguing that much would depend on the inflation outlook and how the bank's past rate hikes could affect financial conditions.