BoJ Rate Hike Sparks Yen Volatility Amidst Global Market Shift

The Bank of Japan (BoJ) has raised interest rates to 1.25%, marking the highest level in 31 years for the country.

This quarter-point hike is Japan's second in just three months, with markets already expecting another increase in December.

At first glance, it seemed like Japan didn't need a rate hike, as core inflation slowed to 1.7% in August, below the BoJ's 2% target.

However, this was partly due to government energy subsidies holding down the number.