BOJ Raises Rates to 1.25% Amid Inflation Fears

The Bank of Japan (BOJ) has raised its policy interest rate by 25 basis points to 1.25%, marking the highest level since 1995.

This decision was made in a 7-2 vote, with board members Toichiro Asada and Ayano Sato voting against the increase.

The BOJ aims to combat persistent inflation and rising energy costs, which have added pressure to household and business expenses in Japan.

Japan's reliance on imported energy makes higher global oil prices a significant factor for its economy.