Bank of Japan raises main interest rate to 1.25%
Business
Big news: Japan's central bank bumped up its main interest rate to 1.25%, the highest it's been since 1995.
This move comes as prices keep rising and the yen stays weak, making things like energy more expensive.
Inflation is almost at the Bank of Japan's target, with prices up 1.7% in August compared with a year earlier.
Investors watch BOJ Governor Kazuo Ueda
Japan is raising rates to fight inflation, and the yen weakened ahead of Friday's decision.
After the announcement, the yen actually dropped a bit, but Japanese stocks got a boost.
Investors are now watching BOJ Governor Kazuo Ueda for hints on what is next; some experts think rates could go even higher by 2027 if inflation sticks around.