TOKYO (dpa-AFX) - The Bank of Japan lifted its benchmark rate by a quarter point to a 31-year high, as widely expected, on Friday.
The policy board, governed by Ueda Kazu, decided by a 7-2 majority vote to raise the interest rate to 1.25 percent from 1.00 percent.
The current rate is the highest since 1995. The bank had lifted its benchmark rate by 25 basis points in June.
Board members Asada Toichiro and Sato Ayano dissented from the hike.
The board said it will continue to raise the policy rate and adjust the degree of monetary accommodation, in response to developments in economic activity and prices as well as financial conditions.
Inflation is expected to accelerate to a level clearly above 2 percent from the second half of fiscal 2026.
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