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 SuzukiEditing by ​Chang-Ran Kim)