Japan's central bank has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level.

In a well-trailed move, the Bank of Japan on Friday raised the policy rate by 0.25 percentage points, taking it to 0.5 per cent — its highest level in nearly two decades.

In a widely anticipated move, the Bank of Japan on Jan. 24 raised its short-term policy rate to 0.50% from 0.25%. Read more here.

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

Good morning. The Bank of Japan raises its interest rate to the highest level in 17 years. Inflation concerns may be making a comeback in the euro area. And the rise of women’s soccer in England is hiding a financial struggle.

Japan's central bank raised interest rates to their highest since the 2008 global financial crisis and revised up its inflation forecasts.

The Bank of Japan had held off hiking rates late last year, preferring instead to wait out any economic surprises from the White House