BOJ lifts rate to 1.25%, flags more as policy enters new phase amid inflation

TOKYO - The Bank of Japan raised its key interest rate to a 31-year high of 1.25 percent on Friday, signaling that more hikes may come, as its governor said monetary policy has entered a different phase to keep accelerating inflation in check.

The 0.25 percentage point hike, coming just three months after its previous increase, was not unanimous, with two of the BOJ's nine board members voting against it at a two-day policy meeting.