Japanese Central Bank Hits 31-Year High with Rate Hike

Japan's central bank has increased its benchmark interest rate to 1.25%, marking the highest level in 31 years.

The decision, made at the end of a two-day monetary policy board meeting, was widely expected and had been largely priced into global markets.

The 0.25-percentage-point increase in the policy rate comes after the US Federal Reserve also raised its key rate this week, amid growing concerns over the weakening yen.

Pressure has been mounting on Japan from the US to raise interest rates, with both countries recently intervening jointly to support the yen.