The Bank of Japan raised its key interest rate to 0.5% from 0.25%, citing a gradual economic recovery and stable inflation around the 2% target. Governor Kazuo Ueda emphasized the need for further hikes if conditions persist, despite uncertainties like foreign inflation. Recent data show wage growth and consumer prices rising, with the CPI for December at 3%. The market reacted with initial declines in share prices, but the Nikkei 225 recovered. The BOJ's approach contrasts with the U.S. Federal Reserve's easing policies. The outlook remains cautiously optimistic, with expected CPI increases stabilizing around 2% by 2026. Teljes cikk (Euronews.com)