BOJ Sets New Record with 1.25 Pct Interest Rate Hike

The Bank of Japan (BOJ) has decided to raise its policy interest rate by 0.25 percentage point, marking the highest level in about 31 years.

The new rate target stands at around 1.25 pct, with the last time it reached this level being back in April 1995.

The BOJ's Policy Board voted seven to two to implement its first interest rate hike in three months, with Governor Kazuo Ueda leading the decision.

Two board members, Toichiro Asada and Ayano Sato, dissented from the move, with Asada calling for keeping the policy rate unchanged at around 1 pct.