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.

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.

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.

Governor Kazuo Ueda and his fellow board members lifted the overnight call rate by a quarter-percentage point to 0.5% at the end of a two-day meeting.

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.

Sayuri Shirai, professor at Keio University and former Bank of Japan Policy Board member, shares why she thinks the central bank has a "communication problem" following a widely expected rate hike.

U.S. stock futures were moving lower in early action on Friday, on the heels of the first record for the S&P 500 of 2024. Dow Jones Industrial Average futures fell 15 points, or 0.03%, to 44,732

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

Masahiko Loo, senior fixed income strategist at State Street Global Advisors, says there could be an interest rate hike in September.

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

The yen strengthened and Japanese government bond yields rose to fresh multi-year highs on Friday after the Bank of Japan hiked interest rates as expected and raised its inflation forecasts.