The Bank of Japan raised its key policy rate to the highest level since 2008 and took a more bullish view on the strength of inflation.The rate hike followed a report showing consumer prices excluding fresh food rising at a faster pace of 3%,

Japan's central bank has raised its key interest rate to about 0.5% from 0.25%, noting that inflation is holding at a desirable target level.

The Bank of Japan is expected to raise interest rates on Friday barring any market shocks when U.S. President-elect Donald Trump takes office, a move that would lift short-term borrowing costs to levels unseen since the 2008 global financial crisis.