Bank of Japan raises interest rates to 31-year high of 1.25%

The Bank of Japan has raised its interest rates to 1.25 percent, marking the highest level in 31 years. The decision, widely anticipated by markets, is part of the central bank's strategy to rein in inflationary pressures.

The policy shift was approved by a 7-2 board vote, with board members Toichiro Asada and Ayano Sato casting dissenting votes. Governor Kazuo Ueda is expected to elaborate on the rationale during a forthcoming press briefing.