BOJ raises shortterm policy rate 25 bps to 0.5 from 0.25
Board raises price forecasts, flags brightening wage outlook
BOJ sees price risks skewed to upside, says markets stable
Ueda says rates still below neutral, signals more hikes
U.S. growth solid, markets stable but Trump risk looms

TOKYO, 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.

The decision marks the BOJ39;s first rate hike since July last year and comes days after the inauguration of U.S. President Donald Trump, who is likely to keep global policymakers vigilant ahead of potential repercussions from threatened higher tariffs.

BOJ Governor Kazuo Ueda said the central bank will keep raising interest rates as wage and price increases broaden, adding that there was scope to push up borrowing costs further before they reach levels deemed neutral to the economy.

But he offered few clues on the timing and pace of future rate hikes, saying the decision will be based on how soon Japan will see trend inflation sustainably hit the BOJ39;s target.

We don39;t have any preset idea. We39;ll make a decision at each policy meeting by looking at economic and price developments as well as risks, he told a press conference after the policy decision.

At its twoday meeting concluding on Friday, the BOJ raised its…