Economy / Markets
Bank of Japan raises rate 25bp to 1.25%, highest since 1995
The Bank of Japan raised its policy rate by 25 basis points to 1.25 percent on Friday, the highest level in 31 years, in a 7-2 vote that delivered its second hike in three months and the sixth since exiting ultra-loose policy in 2024. The bank's statement cited 'moderately recovering' economic activity, producer prices rising at a high year-on-year clip on AI-related demand, elevated crude prices and a weak yen, with core consumer inflation 'approaching 2 percent'.