Tokyo's Nikkei 225 index gained 0.3% to 40,074.87 after the central bank raised its benchmark rate to about 0.5% from 0.25%, as widely expected. It is the highest level for the rate since 2008, as the Bank of Japan shifts out of a long spell of extreme low interest rates meant to spur more borrowing and spending.

The Bank of Japan is expected to raise interest rates on Friday barring any market shocks when U.S. President-elect Donald Trump takes office, a move that would lift short-term borrowing costs to levels unseen since the 2008 global financial crisis.

Tokyo stocks opened higher Friday after an overnight rise on Wall Street, but gains were limited as investors were cautious ahead of

If its outlook is met, "the bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation", it added.

Executives at a leading Japanese bank have apologized and taken pay cuts after police arrested an employee who allegedly stole about $9 million worth of valuables from customers’ safe deposit boxes.

Consumer inflation in Tokyo likely accelerated in January, underlining persistent pressure on living costs, a Reuters poll showed on Friday.

The Bank of Japan has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level. The decision by the central bank came Friday at the end of a two-day policy board meeting in Tokyo.

TOKYO (AP) — The Bank of Japan raises its key interest rate to about 0.5%, citing stronger wages and inflation.

After a two-day monetary policy meeting, the Bank of Japan (BOJ) decided on Friday to raise its policy interest rate to 0.5 percent from 0.25 percent, marking the highest level in nearly 17 years. Camera: FRANCK ROBICHON.

The return of inflation and wage growth is giving the Bank of Japan room to raise interest rates and declare the end of a long period of stagnation.

TOKYO (AP) — The Bank of Japan raises its key interest rate to about 0.5%, citing stronger wages and inflation. Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.