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

The Bank of Japan has raised its key interest rate to 0.25% from 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 ahead of the central bank's decision. Share prices in Tokyo bounced but rose 0.3% by mid-afternoon following the decision. The central bank has kept interest rates near or below zero for years to try to spur inflation, hoping it would sustain stronger growth for one of the world's largest economies. A weak yen has pushed prices higher since it made imported gas, oil and other necessities more expensive. The dollar's gains also reflect high interest rates in the United States.