The fading shadow of reflationists in the Bank of Japan, and the latest addition to the board of an academic favouring an end to ultra-low interest rates, will likely bring the central bank's thinking closer to global peers taking a more conventional approach on monetary policy.

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

Japan's government on Tuesday nominated Junko Koeda, an academic who had warned of the cost of prolonged monetary easing, to join the Bank of Japan board in March, a choice analysts say will keep the central bank on course to raise interest rates.

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.

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 is likely to raise rates at its January 24 meeting following recent supportive comments from BoJ governor Kazuo Ueda and deputy Ryozo Himino.

The Japanese government has nominated Junko Koeda, a political science and economics professor at Waseda University, to join the Bank of Japans (BOJ) nine-member board. Koedas appointment comes at a pivotal time as the

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.

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.

Tokyo, Jan 24 (AP) The Bank of Japan raised its key interest rate to about 0.5% from 0.25% Friday, noting that inflation is holding at a desirable target level. The decision by the central bank came at the end of a two-day policy board meeting in Tokyo.

World shares advanced Friday after U.S. stocks rose to a record and the Bank of Japan raised its key lending rate.

Japan's central bank has raised the cost of borrowing to its highest level in 17 years, as it tries to curb rising prices. 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.