BOJ raises interest rates to 31 — year high in widely expected move

TOKYO, Sept 18 (Reuters) — The Bank of Japan raised interest rates to a 31-year high of 1.25% on Friday in a widely expected move to forestall risks of inflation overshooting its 2% inflation target. At a two-day policy meeting that ended on Friday, the board decided by a 7-2 vote to raise its policy rate from 1%. Board member Toichiro Asada and Ayano Sato dissented to the decision. BOJ Governor Kazuo Ueda is expected to hold a news conference at 3:30 p.m. (0630 GMT) to explain the decision. (Reporting by Leika Kihara, Makiko Yamazaki, Satoshi Sugiyama and Hina Suzuki Editing by Chang-Ran Kim) ((leika.kihara@thomsonreuters.com)