Jan 24 Reuters The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis and revised up its inflation forecasts, underscoring its confidence that rising wages will keep inflation stable around its 2 target.

At its twoday meeting concluding on Friday, the BOJ raised its shortterm policy rate from 0.25 to 0.5 a level Japan has not seen in 17 years. It was made in an 81 vote with board member Toyoaki Nakamura dissenting.

Following are excerpts from BOJ Governor Kazuo Ueda39;s comments at his postmeeting news conference, which was conducted in Japanese, as translated by Reuters

WAGE HIKE

Many firms are saying they will continue to raise wages … Various data shows the U.S. economy is in firm shape. Markets have been stable as the broad direction of Trump39;s policies become clearer. While import price growth is subdued on a yearonyear basis, the weak yen is pushing up import costs.

POLICY RATE

There39;s no change to our view of raising our policy rate and adjusting the degree of monetary support if the economy and prices move in line with our forecasts.

The timing and pace of adjusting monetary support will depend on economic and price developments at the time. We don39;t have any preset idea. We will make a decision at each policy meeting by looking at economic and price developments as well as risks.

SHARP UPGRADE IN INFLATION FORECASTS

The rise in underlying inflation is moderate. I don39;t think we are…