The Bank of Japan raised its key interest rate Friday to a 30-year high, as widely expected, and financial markets shrugged. The central bank raised its policy rate by 0.25 percentage points to 0.75%. That's still low by global standards, but the BOJ has kept that rate near or below zero for years. Most other central banks, like the U.S. Federal Reserve and Bank of England, have been cutting rates after raising them to tame spikes in inflation due to the pandemic. Higher interest rates in Japan could affect currency rates and bitcoin prices, potentially rattling world markets. However, the BOJ had clearly signaled it planned to hike rates, eliminating room for surprises.
