Japan raises interest rate to 1.25pc: Impact on India, Rupee and foreign flows

New Delhi, Sep 18 (UNI) The Bank of Japan (BOJ) has raised its benchmark interest rate by 25 basis points to 1.25pc, taking borrowing costs to their highest level in 31 years. The decision, taken by a 7-2 vote, was widely expected by financial markets and marks another step away from Japan's decades-long ultra-loose monetary policy. The move comes as Japan grapples with inflation pressures linked to higher energy and import costs, while the yen remains under pressure. The US dollar was trading around 155 yen. The BOJ's decision also comes shortly after the US Federal Reserve raised its policy…