Bank of Japan raises its key interest rate, aiming to curb yen’s slide against the dollar

AP Business Writers

TOKYO (AP) — The Bank of Japan has raised its key interest rate to 0.25% from a range of zero to about 0.1%, acting to curb the yen’s slide against the U.S. dollar. The move was widely expected, and the yen gained sharply against the dollar after Wednesday’s decision, trading at about 153 yen. The decision on the overall call rate came just four months after the central bank ended its zero interest rates for the first time in 17 years. Bank of Japan Gov. Kazuo Ueda told reporters the action was taken because the foundation of the Japanese economy is relatively solid, with gradual price rises accompanied by wage increases.