BOJ to raise key interest rate by 0.25 percentage point in Sept. meeting: sources

TOKYO - The Bank of Japan plans to raise its policy rate to 1.25 percent from the current 1.0 percent at its policy meeting later this month, sources familiar with the matter said Tuesday, signaling an acceleration in the pace of rate hikes.

The move, to be decided at a two-day meeting from Sept. 17, would raise the rate to its highest level in about 31 years and follow a rate hike in June, as the BOJ seeks to address the risk of prices rising more than expected amid higher crude oil prices and a weak yen.