BOJ Sets New Interest Rate Record at 1.25% Amid Yen Worries

Japan's central bank raised its benchmark interest rate to 1.25% on Friday, marking a 31-year high. The move was expected and has been widely factored into global markets.

The Bank of Japan increased the policy rate by 0.25 percentage points after a two-day monetary policy board meeting. This decision comes on the heels of the Federal Reserve's key rate hike this week, putting pressure on Japan to follow suit.

Concerns about the weakening yen have been driving the US to push for a rate increase in Japan. The nation recently intervened with the US to prop up the yen, and the exchange rate currently stands at around 155 yen per US dollar.