The Bank of Japan is expected to raise interest rates on Friday to their highest levels since the 2008 global financial crisis, as a broad stocks rally worldwide calms policymakers' fears U.S. President Donald Trump's tariff threats could upend markets.

The Bank of Japan raised interest rates to a 17-year high of 0.5%, with Bitcoin and major altcoins surging by 3-6%.

Backdrop: Japan had been mired in decades of weak prices and economic stagnation, and even as inflation impacted the globe in the aftermath of the COVID pandemic, BOJ policymakers largely viewed local price pressures as imported from elsewhere.

The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis, underscoring its confidence that rising wages will keep inflation stable around its 2% target.

The solid inflation data support the case for the Bank of Japan to raise interest rates on Friday, a move widely anticipated by markets and economists.

Japan's central bank has increased the cost of borrowing to its highest level in 17 years after consumer price rises accelerated in December. The move by the Bank of Japan (BOJ) to raise its short-term policy rate to "around 0.

Japan's central bank raised interest rates to their highest since the 2008 global financial crisis and revised up its inflation forecasts.

The Bank of Japan increased interest rates on Friday to their highest in 17 years and signalled more hikes to come, sending the yen higher against the dollar.