The Bank of Japan (BoJ) has raised its key short-term interest rate by 25 basis points to 0.5%, marking the highest level since 2008.

The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis, underscoring its confidence that rising wages will keep inflation stable around its 2 percent target.

Setting rates in Japan will become a delicate balancing act if tariffs materialize.

The Bank of Japan has raised short-term interest rates by a quarter point, the highest in 17 years, signalling efforts to normalise monetary policy in response to persistent inflation and increasing wages.

The Bank of Japan delivered a widely expected 25 basis point hike to its key lending rate on Friday, bringing the overnight call rate to the highest since 2008 and putting pressure on the dollar. The ICE Dollar Index slipped 0.

The Bank of Japan hiked interest rates to 0.5%, the highest level since October 2008, and pledged to raise rates further if the economy and inflation continue in line with projections. The bank’s pledge to seek more rate hikes sent Japanese government bond yields higher and boosted the yen.

The Bank of Japan has raised interest rates by 25 basis points, marking a 17-year high of 0.50%. This move signifies the end of an era of historically low interest rates for the Asian exporter. We assess how BOJ’s move can impact the U.

Top News Bank of Japan Resumes Hiking Rates as Economy Strengthens The Bank of Japan raised its target for the overnight call rate to 0.5% from 0.25%, making its third rate hike since ending its long-running negative interest-rate policy in March. The bank previously raised the policy rate to 0.25% in July and had kept it at that level since.

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Japan's central bank has increased the cost of borrowing to its highest level in 17 years, after consumer price rises accelerated last year. The move by the Bank of Japan (BOJ) to raise its short-term policy rate to 0.5% comes just hours after the latest economic data showed prices rose last month at the fastest pace in 16 months.

It is the highest level since October 2008 as the economy makes steady progress toward the bank’s goal of stable 2% inflation and wage-backed growth.