Japan Central Bank Raises Benchmark Interest Rate to 1.25% Highest in 31 Years

Japan's central bank has raised its benchmark interest rate to 1.25%, marking a significant increase from the previous rate of 1.0%. This move makes it the highest in 31 years, according to reports.

The Bank of Japan has been trying to normalize monetary policy after decades of keeping interest rates near or below zero to boost borrowing and spending and counter deflation. The rate hike is seen as a key step towards achieving this goal.

The decision was expected at the end of the two-day monetary policy board meeting, and it has already had an impact on global markets. The move aims to control inflation and stabilize Japan's economy, which has been struggling with deflation for years.