Bank of Japan raises interest rate to 1.25%, highest level in 31 years

The Bank of Japan raised interest rates on Friday to their highest level in 31 years at 1.25 percent, a widely anticipated move aimed at avoiding the risk of inflation exceeding its 2 percent target.

At the end of its two-day monetary policy meeting on Friday, the Bank of Japan’s Board of Governors voted seven to two to raise the interest rate from 1 percent.