BoJ hikes rate to 0.5%

The Bank of Japan (BoJ) today raised its key interest rate by 25 basis points to 0.50%, placing more emphasis on signs of a strengthening
economy than a lack of inflationary pressure.

Financial markets had been divided on whether the central bank would keep rates steady, as many politicians hoped it would, or whether it would move to head off the economic risks that arise from having ultra-low money rates for too long.

The BoJ voted 8-1 in favour of the rate rise. Benchmark rates are now the highest in more than a decade.