BOJ Raises Key Rate to 1.25 Per Cent Amid Inflation Fears

The Bank of Japan (BOJ) raised its key interest rate by 25 basis points to 1.25 per cent from 1.0 per cent, marking a significant increase in its monetary policy.

This decision was made at the BOJ's latest Monetary Policy Meeting, where the Policy Board approved the rate hike by a 7-2 majority vote.

The central bank warned that underlying inflation could exceed its 2 per cent target due to rising wage and price expectations, as well as factors such as the impact of developments in the Middle East on Japan's economic activity and prices.