Bank of Japan raises policy rate to 0.25%, second hike in 17 years
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The Bank of Japan lifted its main interest rate Wednesday for just the second time in 17 years in another step away from its long-standing ultra-loose monetary policies. "Moves to raise wages have been spreading" in Japan while "economic activity and prices have been developing generally in line with the bank's outlook", the BoJ said. If the world's fourth largest economy moves in line with the bank's expectations, officials "will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation", it said. Analysts had been divided on whether the BoJ would hike rates, with some predicting policymakers would wait until the autumn because of sluggish consumption in Japan.And while wages are rising -- with unions this year securing their biggest gains in three decades -- workers' pay has failed to keep up with the pace of inflation.The bank is seeking to norma...