Bank of Japan raises interest rate to about 0.5%, citing higher wages and inflation

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. Bank of Japan Gov. Kazuo Ueda is set to speak to reporters later in the day. He repeatedly indicated the move was coming. Recent price data show inflation hovering at about the central bank’s 2% target. Data also show Japanese workers are gaining better wages and are generally set to see solid pay raises.