Bank of Japan raises rate to 1.25%, highest since 1995

The Bank of Japan raised its benchmark interest rate by 25 basis points to 1.25%, its highest level since 1995, in a 7-2 board vote. Underlying inflation is nearing the 2% target. The yen weakened to 156.16 against the US dollar. Governor Kazuo Ueda's statement on future rate hikes is awaited.