Bank of Japan takes policy rate to 0.75%, a 30-year high

The Bank of Japan raised rates on Friday, taking Japan’s borrowing costs to a 30-year high as inflation remains elevated, the yen trades weak against the dollar and real wages continue to fall.

The central bank increased its short-term policy rate to 0.75% from 0.5% on Friday, following a two-day meeting. The decision was widely expected by economists and analysts.

The move takes Japan’s interest rates above 0.5% for the first time since 1995.

It is the first rate increase by the central bank since January.

BOJ Gov. Kazuo Ueda is scheduled to speak later Friday.