BoJ Raises Key Interest Rate to 31-Year High Amid Global Central Bank Hikes

The Bank of Japan (BoJ) has raised its key interest rate for the second time this year, increasing it to 1.25 percent, a 31-year high since 1995.

This decision was made by a vote of 7 to 2 and follows similar moves from the European Central Bank (ECB) and the U.S. Federal Reserve (Fed), which raised their key interest rates last week and Wednesday respectively.

The rate hike is partly due to the consequences of the war in Iran, but it also comes as a response to inflation concerns in Japan, where the yen's exchange rate has been under pressure.