The Bank of Japan raised interest rates by 25 basis points to 1.25% on Friday, the highest in more than 30 years, as inflation keeps biting in the country.
The decision was not unanimous, with two board members dissenting. The hike was widely expected: almost 90% of economists surveyed by CNBC believed the move would take place. They also expected for Toichiro Asada and Ayano Sato, both of whom have been appointed by Prime Minister Sanae Takaichi, to dissent. The prime minister has generally favored accommodative monetary policy alongside fiscal support.
