Bank of Japan lifts interest rates

The Bank of Japan has raised its main interest rate by a quarter percentage point to 0.5%, the highest in more than a decade.

The BOJ, whose board members voted 8-1 for the rise, said the economy was likely to continue growing and it would make further rate adjustments only gradually.

In pushing up the cost of money, at a time when many politicians have expressed concern about the Japanese economy, the central bank has underlined its independence.