The Bank of Japan lifted its benchmark interest rate to its highest level in 30 years and signaled more increases are on the way, a policy shift with the potential for big ripples far beyond Japan’s shores

Japan's central bank announced on Friday that it raised the benchmark interest rate to 1.25%, marking a 31-year-high. The decision, made at the end of a two-day monetary policy board meeting, was anticipated and incorporated into recent global market trends. The rate hike, which increased the policy rate by 0.25 percentage points, follows a similar move by the Federal Reserve this week. The central bank's move comes amid global concerns about the weakening yen, leading to pressures for Japan to raise rates.